California Voters Reject Prop. 40 Billionaire Tax 52.8% to 47.2% After $333 Million Campaign

Published November 11, 2026 | US Trending News | TrendWire Daily

Voters walking into a California polling place on election day with American and California flags and palm trees

California voters have rejected Proposition 40, the nation's first state-level wealth tax, defeating the measure 52.8% to 47.2% after one of the most expensive ballot campaigns in American history. The Associated Press called the race on Monday, November 9, 2026, nearly a week after the November 3 election, with an estimated 83% of the vote counted: 5,789,026 votes against and 5,159,356 in favor.

What Proposition 40 Would Have Done

Direct answer: Proposition 40 would have imposed a one-time 5% tax on the net worth of California residents worth more than $1 billion — about 200 billionaires — the first state-level wealth tax of its kind in the US. It was defeated 52.8% to 47.2%. Supporters said it would generate about $100 billion over five years for healthcare and education to offset federal Medicaid funding cuts.

The measure was the most ambitious wealth-tax proposal ever put to American voters. A one-time 5% levy on net worth above $1 billion, aimed at roughly 200 California billionaires, would have raised about $100 billion over five years, according to supporters — money earmarked for healthcare and education to offset federal Medicaid funding cuts. The campaign was led by SEIU-United Healthcare Workers West, which framed the tax as a way to protect hospitals and clinics from Washington's cuts.

The stakes were national as well as Californian. No US state has ever imposed a wealth tax, and economists and political strategists across the country were watching the result as a test of whether such a tax could survive a direct vote — and whether billionaires would leave a state that imposed one.

How the Money Split the Map

The result exposed a sharp geographic divide inside California. San Francisco voters backed the measure roughly 56% to 44%, and Los Angeles, San Francisco and Alameda counties voted 54–56% yes. But the Central Valley and Northern California voted only 40–45% yes — a gap of more than 10 points between the coastal metros and the interior.

The pattern shows where the wealth-tax idea resonates and where it does not. In the Bay Area and Los Angeles, where inequality is most visible and the cost of living highest, a majority supported taxing billionaires. In the Central Valley and the north, where the economy runs on agriculture, timber and small towns, voters were far more skeptical — a reminder that a measure backed by the coastal cities can still lose statewide.

A $333 Million Campaign

The "no" campaign raised more than $333 million through the PAC Building a Better California, making it one of the most expensive ballot-measure campaigns in US history. Google co-founder Sergey Brin alone contributed more than $100 million to defeat the measure. Opponents outspent supporters roughly 10 to 1.

The spending gap defined the campaign. Supporters, led by the healthcare workers' union, argued that billionaires could afford a one-time 5% levy to fund hospitals and schools. Opponents — bankrolled overwhelmingly by the very billionaires the tax would have hit — warned it would drive wealth, jobs and investment out of California, and that a one-time tax would become a recurring one. The "no" side's message, amplified by more than $333 million in advertising, prevailed.

An Unusual Political Lineup

The campaign scrambled the usual partisan lines. The state Democratic Party supported Proposition 40, but Governor Gavin Newsom opposed it — as did both candidates in the race to succeed him: Democrat Xavier Becerra and Republican Steve Hilton. It is rare for a sitting governor, the state party and both gubernatorial candidates to be on different sides of a ballot measure, and the split gave the "no" campaign bipartisan cover.

Newsom's opposition was significant. The governor had warned that a wealth tax could push billionaires — and their tax revenue — out of California, giving moderate Democrats permission to vote no. The measure lost by 5.6 points in a state where Democrats hold a large registration advantage.

The San Francisco skyline at golden hour with downtown towers and bay water

What Happens Next

Backers vowed to try again in 2028 if the Legislature fails to fund healthcare — so the defeat may be a delay rather than a burial. The union behind the measure has said the funding gap that motivated it has not gone away, and a second attempt in two years would come with a fresh campaign and, potentially, a different political landscape.

Meanwhile, the countermeasure moved in the opposite direction. Proposition 42, a measure barring future wealth taxes, was leading 51.6% to 48.4% — a result that, if it holds, would make a future wealth tax harder to pass. And Proposition 44, a union-backed clinic-spending measure, was also rejected, giving organized labor a difficult night overall — in a midterm cycle in which established parties struggled elsewhere too.

The broader lesson may be about money in politics. A billionaire tax campaign outspent 10 to 1 by the billionaires it targeted was always going to be an uphill fight — and in the end, the side with $333 million won. Whether the result reflects voters' genuine skepticism about wealth taxes, or simply the power of a record-breaking advertising blitz, will be argued for years. The numbers are not in dispute: 52.8% to 47.2%.

Frequently Asked Questions

What was Proposition 40?

Proposition 40 would have imposed a one-time 5% tax on the net worth of California residents worth more than $1 billion — about 200 billionaires — the first state-level wealth tax of its kind in the US. Supporters said it would generate about $100 billion over five years for healthcare and education to offset federal Medicaid funding cuts.

What was the result?

Proposition 40 was defeated 52.8% to 47.2% — 5,789,026 votes against and 5,159,356 in favor, with an estimated 83% of the vote counted. The Associated Press called the race on Monday, November 9, 2026, nearly a week after the November 3 election.

How much was spent on the campaign?

The "no" campaign raised more than $333 million through the PAC Building a Better California. Google co-founder Sergey Brin alone contributed more than $100 million, and opponents outspent supporters roughly 10 to 1.

Which parts of California supported Prop. 40?

San Francisco voters backed it roughly 56% to 44%, and Los Angeles, San Francisco and Alameda counties voted 54–56% yes. The Central Valley and Northern California voted only 40–45% yes.

Who supported and opposed Prop. 40?

The state Democratic Party supported it, but Gov. Gavin Newsom opposed it, as did both gubernatorial candidates — Democrat Xavier Becerra and Republican Steve Hilton. Supporters were led by SEIU-United Healthcare Workers West.

Will the billionaire tax come back?

Backers vowed to try again in 2028 if the Legislature fails to fund healthcare. But Proposition 42, a countermeasure barring future wealth taxes, was leading 51.6% to 48.4%, and Proposition 44, a union-backed clinic-spending measure, was also rejected.

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