On Sunday, August 3rd, 2026, the California Democratic Party (CADEM) announced its endorsement of Proposition 40, also known as the Billionaire Tax Act. The measure proposes a one-time, five-percent tax on the net worth of California’s approximately 200 billionaires. The party’s executive board narrowly voted in favor of backing the ballot measure, according to Politico.

The endorsement came despite opposition from prominent California Democrats, including Governor Gavin Newsom. Newsom had previously told The New York Times that the measure would be defeated but has since advocated for a national billionaire tax and an economic reset in America. He criticized Proposition 40 for allocating its revenue to offset federal spending cuts rather than directly funding schools and housing.

CADEM Chair Rusty Hicks emphasized the party’s careful endorsement process, stating, “Every endorsement we make is earned, not given. California Democrats take a deliberative approach to our endorsement process that puts our values first and ensures our members have a meaningful voice in shaping the future of our state.”

The measure has garnered support from progressive figures such as Rep. Bernie Sanders (I-Vt.), who championed the bill earlier this year in Los Angeles. The Service Employees International Union (SEIU) Healthcare Workers West, a leading supporter of the measure, praised the party’s endorsement. Dave Regan, president of SEIU United Healthcare Workers West, said, “This endorsement puts to rest the idea that California democrats are not united by the billionaire tax — they are. Polling shows that more than 80 percent of registered Democrats support this critical solution to our healthcare crisis and now the Democratic Party of California has officially embraced that strong support through this endorsement.”

Public opinion polling from March 2026 by the UC Berkeley Citrin Center for Public Opinion Research and Politico indicated that half of Californians supported the ballot measure and intended to vote for it in the November election.

Maxine Waters (D-Calif.) attended the vote in San Diego, helping secure the necessary yes votes for the endorsement.

Sources