California billionaires could soon face a one-time wealth tax requiring payment of five percent of their net worth, under a new proposal designed to offset recent federal healthcare funding cuts.
California is advancing a proposed 5% wealth tax on about 200 billionaires — expected to raise roughly $100 billion for education and healthcare.
— Jake (@JakeCan72) October 29, 2025
It would require residents to report their total net worth, including property, investments, businesses, and other assets, so the… pic.twitter.com/R0XYRn7kf1
The "2026 Billionaire Tax Act" aims to replace the roughly $30 billion in federal funding cut from California's Medicaid program, while also generating revenue to support the state's public education system. The loss of funding originated from President Trump's One Big Beautiful Bill.
Proponents have submitted the measure to the Attorney General’s office for approval to start gathering signatures as of October 21, for placement on California’s 2026 midterm ballot. The measure must secure more than 870,000 signatures by next spring to qualify for the November 2026 election.
One of the proponents of the measure includes the Service Employees International Union (SEIU). Their president, Dave Regan, said in a statement: "If we do not do this, millions of people are going to lose health care, an untold number of people will go without treatment and there will be tragedy after tragedy." SEIU union workers come from a range of industries, including healthcare, the public sector, and property services.
Some wealthy California residents who would face this tax include Meta CEO Mark Zuckerberg and Nvidia CEO Jensen Huang.
This proposed measure comes as California continues to face an outpour of residents leaving the state, for others with greater affordability.