By admin 
A nationally watched initiative that would have taxed the wealth of California billionaires has been defeated at the ballot box, according to the Associated Press.
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Preliminary results as of Monday evening showed about 52.9% of voters rejected the one-time, 5% wealth tax, compared to 47.1% who voted for it. The Associated Press at 6:28 p.m. Monday projected the ballot measure would fail. The AP estimated 83% of ballots in the state had been counted.
Critics of the billionaire tax spent more than $380 million to fight the initiative — and boost Prop. 42 and Prop. 41, both of which contained poison pill provisions designed to cancel out the wealth tax. Billionaires led by Google co-founder Sergey Brin funded much of those efforts under the banner of a new group called Building a Better California.
Before polls had even closed last week, labor leaders who backed the measure, including SEIU-United Healthcare Workers West president Dave Regan, were already talking about trying again in 2028. Backers of Prop. 40 argued it was necessary to address Medicaid cuts that could cost $30 billion annually and cause up to 3.4 million Medi-Cal members to lose coverage.
“If Sacramento fails to deliver a real solution to the healthcare crisis instigated by the One Big Bill — one that actually makes billionaires pay their fair share — then California’s healthcare workers intend to be back on the ballot in 2028 to correct the damage,” Regan said.
Regan blamed billionaires and other ultra-wealthy donors for burying Prop. 40 in a deluge of “completely egregious fabrications, lies, misinformation on our airwaves.”
The union’s chief of staff, Suzanne Jimenez, reiterated the point in a statement Monday evening.
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“Buying an election is not the same as winning the debate,” she said.
The proposition was narrowly endorsed by the California Democratic Party and had more robust support from the California Federation of Labor.
But critics of the tax argued it risked driving billionaires and their businesses out of the state. Opponents included top Democrats like Gov. Gavin Newsom, some left-leaning groups like the Planned Parenthood Affiliates of California, and many tech entrepreneurs.
The groups also argued Prop. 40 could be expanded beyond billionaires through a “loophole” in the text, though they didn’t note that the Legislature could already accomplish that and has so far shown no appetite for wealth taxes.
Groups that fought against the tax, including the California Medical Association and California Primary Care Association, said in a joint statement that the measure “risked California’s economic competitiveness and fiscal stability, as well as the revenue we rely on to fund our top priorities — from education and healthcare to public safety and infrastructure.”
“The defeat of Proposition 40 does not diminish the urgent challenges California faces, including the enormous pressure on our healthcare system from federal cuts under H.R. 1,” said Evan Westrup, a spokesperson for the No on 40 campaign. “We look forward to working with Governor-elect Xavier Becerra, legislative leaders, and stakeholders across the state on more thoughtful, inclusive solutions that provide durable, sustainable funding for the future.”
Building a Better California said in a statement that Prop. 40 “threatened to undermine California’s economic advantage and put at risk the revenue that funds education, healthcare, public safety, and all the other essential services Californians rely on.”
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This story was originally published November 9, 2026 at 6:59 PM.