Organized labor efforts to secure state-level health care funding received a fresh boost as the National Union of Healthcare Workers formally endorsed Proposition 40, the California Billionaire Tax.
The nearly 20,000-member union joins more than 200 organizations and lawmakers supporting the measure, which is designed to offset the impact of federal health care funding cuts.
Proponents argue the measure is necessary to keep community hospitals and clinics operating as they face severe budget pressures and staffing shortages.
“Our hospitals in California are already severely understaffed, and the patients we serve are already waiting too long for care,” said Nicholas Cordero, an NUHW vice president at Providence St. Joseph Hospital. “Billionaires get so much out of California they should put more in to keep hospitals and clinics open and ensure all Californians can still access critical medical care close to home.”
Union leaders have pointed to federal actions under President Donald Trump, arguing that his administration’s “Big, Ugly Bill” cut health care funding in California to finance additional tax breaks for billionaires.
According to the union’s press release, the federal cuts could eliminate health care coverage for up to 3.4 million Californians, double health insurance premiums for millions more, and lead to clinic closures, layoffs and reductions in critical medical services across the state.
Proposition 40 proposes a tax targeting individuals in California with a net worth exceeding $1 billion. Supporters say those individuals collectively hold about $2 trillion in wealth.
Supporters estimate the tax could generate about $100 billion to replace health care funding affected by federal cuts. They say the revenue would be earmarked to sustain medical services for seniors, veterans and families, prevent teacher layoffs in public schools and fund food assistance programs.
Labor leaders point to mounting financial strain across the state’s health care sector. According to supporters, more than 400 hospitals statewide have already laid off more than 3,400 health care workers, while projections show up to 145,000 jobs could be affected by federal funding cuts.
Advocates also warn that without revenue from Proposition 40, an estimated 83 California hospitals and clinics could face closure risks.
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In addition to endorsing Proposition 40, the union voted to oppose Propositions 41 and 42, which supporters of Proposition 40 characterize as “poison pill” measures intended to undo the billionaire tax.
The initiative qualified for the ballot after supporters submitted more than 1.6 million signatures. It is backed by a broad coalition that includes the California Democratic Party, the California Nurses Association, Sen. Bernie Sanders and Rep. Ro Khanna.