CALIFORNIA — Today, Save California Health Care and Public Education hosted a virtual press conference during which they announced the filing of a ballot initiative that would enact a one-time, emergency 5% tax on billionaires.

The initiative aims to prevent a statewide healthcare system collapse and to stop ERs from closing their doors due to pending cuts to federal Medicaid funding.

The press conference included Prof. Robert Reich, former U.S. Secretary of Labor, Prof. Emmanuel Saez, University of California, Berkeley, along with frontline California healthcare workers and patients who highlighted that California is facing approximately $100 billion in federal healthcare funding cuts over the next five years.

The reductions were advanced by Republicans in Congress as part of a broader effort to protect existing tax advantages for the ultra-wealthy, shifting the burden onto patients, providers, and communities.

Josephine Rios, a Nursing Assistant in Orange County, spoke passionately during the press conference about what Medi-Cal means to her grandson, Elijah:

"My beautiful grandson, Elijah, is a bright light in our family whose smile can melt the heaviest hearts. Elijah was born with a grade 4 hemorrhage, and lives with challenges that are part of his life. What defines Elijah is not his special needs – it’s his spirit, his laughter, his will.

"Without MediCal, his medication would cost $5,000 a month. He also receives 19 hours of behavioral, occupational and physical therapy. All of this is made possible by MediCal. Without it, we wouldn’t have Elijah.

"I didn’t become a healthcare worker just for the funds, or because it’s a good paying job. I have empathy, and with my UHW family, I will fight for Elijah and for all MediCal patients."

Analysts warn that the resulting shortfall could trigger a cascading collapse in access to care, including shuttered services, longer wait times, staffing losses, and reduced capacity for working families. Once passed, the initiative would replace the lost funding through an emergency, one-time tax on Californians with more than $1 billion in wealth — about 200 individuals statewide. A smaller portion of the revenue would be used to shore up K-12 public education funding, which is expected to see direct and indirect impacts from looming federal cuts.

STATEMENTS

“California is facing a manufactured crisis. These federal cuts didn’t happen by accident — they were designed to shield billionaires from contributing while pushing the consequences onto patients and workers. A time-limited emergency tax on the ultra-wealthy is a practical way to keep the healthcare system functioning.” – Professor Robert Reich, former U.S. Secretary of Labor

“We are already short-staffed, and every week more patients walk through our doors with fewer places to go. If these cuts take effect without replacement funding, it won’t just mean longer lines -- it means people won’t be able to get care when they need it.” – Mayra Castanada, Ultrasound Technologist in Lynwood, CA

"The wealth of California billionaires has exploded in recent years while health and education in California are getting defunded by the Trump administration. A first-of-its-kind one-time 5% tax on California billionaires can bring substantial tax revenue--$100 billion--to the state. The tax is small relative to the massive gains billionaires have made yet large enough to preserve programs that are crucial for California's economy and its continued success." – Professor Emmanuel Saez, University of California, Berkeley

“The Patriotic Millionaires support the proposed 2026 California ballot measure that would enact a one-time, 5% tax on the state’s billionaires. This is a common-sense solution that ensures the richest in California pay back into a system that enables their success and hopefully inspires other states and cities around the country to do the same. There are many problems to fix in our beautiful state, and country. This measure will not solve everything. But it is a good and important step in the right direction, and the Patriotic Millionaires are proud to see it get off the ground today.” – Tim Disney, on behalf of Patriotic Millionaires

BACKGROUND

• The shortfall stems from Medicaid and related federal healthcare cuts advanced by the Republican-controlled Congress, aimed at preserving tax advantages for billionaires and ultra-high-wealth households.

• For California, the cuts total roughly $100 billion over five years.

• Without replacement funding, analysts warn California could see:

  • Closure or contraction of hospital and clinic services

  • Reduced long-term care capacity

  • An estimated 145,000 lost healthcare jobs

  • Strained access to care for working families across the state

• The proposed ballot initiative would raise $100 billion through a one-time emergency tax on Californians with more than $1 billion in total wealth — approximately 200 individuals.

• No new taxes on the middle class, small businesses, or homeowners.

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