The Service Employees International Union (SEIU) and other proponents announced a proposal to impose a one-time 5% tax on the net worth of billionaires in California.

The tax is intended to mitigate the effects of federal funding cuts to Medicaid and other social safety net programs affecting low-income residents.

The big picture: A portion of the revenue would also support K-12 education, helping counter threats of federal grant funding reductions for public schools. • The measure would apply to tax year 2026, with funds available for appropriation starting in 2027. • Proponents estimate that the tax would generate approximately $100 billion for the state, aiming to make California’s tax system more equitable.

What we’re watching: Supporters have formally requested Attorney General

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