As attacks on food access mount at federal level, proponents of California Billionaire Tax Act add food-assistance funding to updated initiative filing

New provisions respond to federal cuts that threaten Medi-Cal, food security, and statewide economic stability

SACRAMENTO — Supporters of the California Billionaire Tax Act today unveiled an updated version of the initiative that formally adds dedicated funding for food-assistance programs, reflecting the profound link between health, food security, educational outcomes, and economic stability. 

The revised initiative – filed through the regular 30-day amendment process for filed initiatives – now directs roughly 90% of revenue to backfilling federal Medicaid cuts impacting Medi-Cal, while 10% will now support both public education and state food-assistance efforts.

These revisions were submitted as part of the initiative-qualification process outlined by California’s ballot-measure regulations, including filing updated ballot initiative language with the Attorney General prior to signature circulation. The updated text will be used to generate an official title and summary for voters.

“This update strengthens the measure’s ability to protect California families. Food security is foundational to strong health outcomes, childhood development, and educational success – and those needs become even more urgent when federal actions undermine Medicaid and nutrition programs simultaneously,” said initiative proponent Suzanne Jimenez who also serves as Chief of Staff to a California-based union of frontline healthcare workers, SEIU-UHW. “By directing a portion of revenue to food assistance and education, the measure is responding to the deeply connected challenges families will be facing as the federal cuts begin to trigger a collapse in California’s healthcare system and economy. There is currently no other viable solution that will stave off the closure of emergency rooms and the hundreds of thousands of layoffs that will result from these federal cuts to Medi-Cal, if California does not act to require this necessary, one-time emergency contribution from its billionaires.”

A direct response to the federal Medicaid cuts

Supporters emphasized that the recent federal Medicaid reductions will have sweeping and immediate consequences unless the state fills the gap. Without intervention, California faces:

• ER and hospital closures across the state, particularly in rural and underserved areas that depend heavily on Medi-Cal reimbursements.

• Loss of up to 145,000 health-care jobs, resulting from reduced funding for hospitals, clinics, long-term care facilities, and behavioral-health services.

• Significant job losses in sectors far beyond health care, as an estimated four million California businesses wrestle with increased insurance premiums triggered by the federal cuts.

• Reduced access to preventive care, including chronic-disease management, maternal health, and pediatric services, which increases long-term costs and destabilizes families.

Supporters stressed that trying to address the health-care crisis without also addressing the food-security crisis created by federal reductions to SNAP benefits would have been incomplete. Food insecurity directly worsens health outcomes, drives up emergency-care use, and undermines children’s ability to learn – creating a cycle of costs and consequences for families and the state. 

How the updated funding formula works

• ~90% for Medi-Cal and health-care stabilization

  Funds will offset federal Medicaid cuts to protect access to doctors, hospitals, emergency care, and community health services.

• ~10% for public education and food assistance

  The revised measure includes targeted funding for school-based nutrition programs, community food-assistance efforts, and education support for children who are disproportionately affected by the federal cuts.

The impact of federal SNAP/CalFresh cuts

• Currently, 5.5 million Californians benefit. 3.5 million are senior citizens and children.

• At least 754,000 people could lose their entire monthly benefit, with over 3 million households facing reductions.

• The estimated funding loss is $2.5 to $4.5 billion annually

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About the California Billionaire Tax Act

 The California Billionaire Tax Act proposes a modest tax on the wealth of the state’s ultra-high-net-worth individuals to safeguard Medi-Cal, protect hospitals and health-care workers, expand food-assistance programs, and support public education. The updated initiative reflects a comprehensive response to federal policies that simultaneously threaten health care, food security, school performance, and economic stability throughout California.

Paid for by Save California Health Care and Public Education, Sponsored by Service Employees International Union – United Healthcare Workers West