californians

About 260 California billionaires would be subject to Proposition 40’s one-time 5% wealth tax according to the Forbes Real-Time billionaires list. Just 30 of those billionaires or their spouses, or 1 in 8, spent money opposing Proposition 40, the billionaire tax, according to a Times analysis of recent campaign filings.

Billionaires have individually contributed $293 million to oppose the tax measure and to support Proposition 41 and 42, which would nullify the billionaire tax if either receives more votes, according to a Times analysis. Sergey Brin, co-founder of Google, has given $102 million, more than a third of all billionaire money against the measure. But this is less than 1% of his estimated tax bill.

Several billionaires also contributed to the political action committee of the California Business Roundtable, which is spending to oppose Proposition 40 and support Proposition 43. Peter Thiel gave $3 million, Eric Schmidt gave nearly $2.6 million, Marco DeGeorge’s wife, Kim, gave $1.9 million, Chris Larsen gave $750,000 and Douglas Leone and his wife gave $500,000.

Proposition 40 would apply the tax to billionaires who were California residents on Jan. 1, 2026, and the taxable amount would be based on their net worth on Dec. 31. The tax is payable over five years.

Altogether, these individuals would owe at least $107 billion in taxes, according to an analysis by economists Jasper Boll, Emmanuel Saez and Gabriel Zucman. Their research was published in the National Bureau of Economic Research in August. Saez and Zucman are also architects of the tax proposal.

This amount is 5% of their combined estimated wealth by Forbes as of Oct. 16 and factors in a certain amount of tax avoidance and evasion. Spread across all 39 million Californians, the $107 billion would be roughly $2,700 per person. The Public Policy Institute of California estimates that the median household net worth in California was $303,000 in 2023.

The four richest Californians — Sergey Brin, Jensen Huang, Larry Page and Mark Zuckerberg — would owe 40% of the estimated taxes to be collected from the billionaire tax, according to a Times analysis. Their wealth largely comes from ownership of stock in extremely high-value technology companies.

Their net worth would increase 5% in about four months if their stock investments continues to grow as they have since December.

California billionaire wealth grew nearly threefold from 2022 to 2026, according to Times analysis of Forbes data collected by Boll and his colleagues, and much of that growth was not taxed. Billionaires’ taxable income is small compared with their wealth, because most of that wealth is invested in public stocks, and gains aren’t taxed until the stock is sold.

Page and Brin disclosed no taxable income in three of the years since 2019. Many others had similarly no publicly disclosed income. For that reason, Boll and his colleagues estimate that the Proposition 40 one-time tax would raise more than $100 billion, “with comparatively minor impacts on income tax revenue” from some billionaires leaving the state.

Based on Meta’s filings, the economists estimated that Zuckerberg’s taxable income was about $947 million in 2025, just 0.4% of his net worth.

Over the summer, Zuckerberg shared with Meta advisors his plans to relocate outside California to avoid the possibility of a significant reduction in his control over the company as a result of selling enough stock to fund a 5% tax. The advisors determined that Zuckerberg’s leadership presence at Meta headquarters was essential to the company’s success. On Wednesday, Meta announced the creation of new, nonvoting Class C common stock, which will allow Zuckerberg to sell the amount he needs to pay his potential tax bill while maintaining his voting power in exchange for his commitment to remain in the state for eight years.

Researchers at the Hoover Institution estimate the revenue to the state to be closer to $40 billion based on reports of billionaires’ residential purchases outside the state before and after Jan. 1 and their estimate of unannounced residency moves.

Chris Hoene, executive director at the California Budget and Policy Center, a nonpartisan group, said the residency question hinges on the amount of time spent living in the state. “Purchasing property in another location does not mean that they have changed their residency,” he said.

Ultimately, the state’s Franchise Tax Board, responsible for administering the tax, will have to assess residency. Hoene says this task is “easier for them to do than people realize.” The board will also calculate the amount of wealth subject to the tax using publicly available stock information and private assessments of personal property, such as artwork and jewelry. Real property, pensions and retirement accounts would be excluded.

Opponents of Proposition 40 are concerned that the threat of wealth taxes will lead to billionaires continuing to leave the state, resulting in a long-term decrease in state income tax revenue. Forbes recently reported that Brin registered to vote in Nevada last year. Peter Thiel disclosed Dec. 31 that he opened a new office in Miami; Florida has no wealth tax or income tax. But in July, he purchased a $130-million mansion in Bel-Air.

“The reality is the income tax loss can never get anywhere near the scale of what the wealth tax gain would be,” Hoene said.

Ninety percent of that gain would be spent on healthcare services to fill a gap in Medi-Cal from losses in federal funding that the measure’s authors estimate would total $190 billion over the next 10 years. Medi-Cal provides healthcare coverage for one-third of low-income Californians, according to the Legislative Analyst’s Office.

Gov. Gavin Newsom opposes a California-only tax and has instead called for a national wealth tax. Democrat Xavier Becerra and Republican Steve Hilton, who are running to replace Newsom, have spoken out against the tax. Other opponents include the California Teachers Assn., the California Medical Assn., and Planned Parenthood Affiliates of California. Supporters include Service Employees International Union, U.S. Sen. Bernie Sanders (I-Vt.), the California Democratic Party and the California Federation of Labor Unions AFL-CIO.

Times staff writer Queenie Wong contributed to this report.

At the federal courthouse in downtown Los Angeles late Monday, several green card holders arrested in a crackdown on alleged California voter fraud expressed confusion over the charges — with some saying they had no recollection of registering to vote, as Trump administration officials accuse them of doing.

Among them was Ana Domínguez, 60, a native of El Salvador living in Long Beach as a lawful permanent resident. Federal authorities accused her Monday of fraudulently registering to vote in July 2006 and then lying about it in her naturalization paperwork in March 2026.

Domínguez said she did not have any memory of registering to vote.

Another man accused of the same crimes as Domínguez said the same: He wasn’t aware of ever registering to vote, as federal prosecutors claimed he had.

Both were among the 28 people charged with federal election-related crimes Monday, including fraudulent voter registration and making false statements in a naturalization application. Federal prosecutors and high-ranking Justice Department officials had touted the arrests during a news conference hours before as proof that California elections are corrupted by noncitizen voters — as President Trump has long alleged.

State officials said the isolated instances of noncitizens voting, if accurate, are not evidence of widespread voter fraud. They also raised questions as to whether the charges could be trusted to be accurate — citing similar accusations being disproved elsewhere in the country.

Election experts have said many instances of noncitizens registering to vote are a result of administrative error or confusion on the part of the immigrant — not intentional criminality.

“We know from past experience that sometimes people register to vote accidentally, as when there is a mistake at the DMV,” Rick Hasen, director of the Safeguarding Democracy Project at UCLA School of Law, wrote Monday in a blog post. “There is only a crime if the government can prove willful violations of federal law.”

Four of the defendants charged Monday had initial court appearances later that afternoon. Beforehand, more than a dozen of their loved ones milled around the federal courthouse in downtown L.A., antsy and clearly worried.

One woman, her baby and young daughter in tow, struggled to find the right courtroom. Another woman — Domínguez’s daughter — cried in the hallway as she waited for her mother’s case to get called up. When Domínguez moved to stand before the judge, she blew a kiss to her husband and daughter in the second row. She wore a black back brace and her legs were cuffed.

A third defendant — Omar Muñoz, 72, a lawful permanent resident from Belize whose arrest at his home in Commerce was captured by photographers in images transmitted around the world — shuffled into a court room shackled at the waist, his feet cuffed, still wearing the red and black pajama pants he’d been arrested in.

Homeland Security Investigations task force officers escort a suspect accused of illegally registering to vote to a processing facility at Federal Building in Los Angeles on Monday.

(Jae C. Hong/AP Photo)

Muñoz was charged with fraudulently registering to vote in September 2019, and then voting in 2020, twice in 2022 and again in 2024. He is also accused of lying on his application to become a naturalized U.S. citizen, when he claimed to have never falsely claimed to be a U.S. citizen in the past.

In the court room, Muñoz held a hand over his heart as he waved to his family in the first row of the gallery.

Hasen, the UCLA expert, wrote that the government’s blasting out images of Muñoz being arrested was clearly “meant to convey that the problem of noncitizen voting in California is both pervasive and serious, crimes that are undetected by willfully ignorant California election officials.”

But the reality, he wrote, “is likely far different,” with voter fraud limited to isolated cases, some with less nefarious intent.

First Assistant U.S. Atty. Bill Essayli, the top federal prosecutor in Los Angeles, said Monday that the cases represent strong federal work to ensure that noncitizens aren’t negating the votes of eligible U.S. voters — a problem he said California officials have refused to recognize despite federal authorities providing the proof.

Essayli dismissed the idea that those charged may have been unaware of what they were doing. “You have to go out of your way to register to vote, it’s not something that just happens to you,” Essayli said.

José Antonio Bañuelos-Díaz, 42, a Mexican national and West Adams resident, appeared in court wearing a reflective vest with the name of a landscaping company, blue jeans and boots with the American flag on them. He’d been on his way to work when he was arrested.

During the hearings, the defendants only spoke to acknowledge that they reviewed and understood the charges against them. In every case, the federal prosecutor said the government was not seeking detention.

The magistrate judge ordered the four released on personal recognizance and said they were not required to be under supervision. They are all set to appear in court for a preliminary hearing on November 9. Their deputy federal public defenders did not respond to a request for comment.

Lliani Orantes, Muñoz’s daughter and a nurse who was born in the U.S., said her father had been hauled out of the family home by federal authorities after they swarmed and cordoned off the block. She said the family was rushing to figure out what happened, including whether Muñoz could have been confused with younger relatives of the same name, including a U.S.-born son who is a registered voter.

Orantes also expressed frustration with the handling of her father’s arrest — to which federal authorities had clearly alerted some media, who were brought along for the raid.

She said her father is recovering from cervical surgery, rotator cuff repair on a shoulder and a double knee replacement, and that he was pulled out of the family’s home “like he was a dog” as part of what she described as a “political ploy, an example used for the operation” — which federal authorities dubbed “Operation Protect the Vote.”

“They’re trying to instill fear in society,” she said.

“We have so much more in the world to be dealing with, do we really need to focus on these little things that could be taken care of in a different fashion? In a different way? Like, hey, somebody from immigration visit the home,” she said.

Acting United States Deputy Atty. Gen. Trent McCotter speaks at a news conference Monday to announce charges against 28 people in California accused of illegally registering to vote as noncitizens.

(David Butow/For The Times)

California Atty. Gen. Rob Bonta — who is defending the state and top election officials for the state and Los Angeles County against a lawsuit from the Justice Department alleging they are not treating alleged voter fraud by noncitizens seriously enough — said Monday that voting illegally is wrong and “one off, isolated incidents” of it should be prosecuted.

But Bonta denied that there is widespread voter fraud in the state, called 28 cases brought out of the 23 million registered voters in California a “drop in the bucket,” and said he’d be watching how those cases play out in court.

“We’ll see what the facts show, and whether they’ll have to drop charges or whether they’ll be able to prosecute,” he said.

About 3 p.m. Monday, the four defendants at the downtown courthouse were released and exited the court room, some to family members waiting in the hallway to hug them.

Domínguez wiped away tears as she recounted her arrest, showing bruises on her wrists from the handcuffs.

“They were accusing me of voter fraud since 2006,” she said. Domínguez said the accusations don’t even make sense considering she has never voted.

“If I would have committed all those frauds about voting registration and whatever they’re saying, since 2006, wouldn’t you imagine that I would have been voting all these other years?” she asked.

In a visual presentation at their news conference, federal authorities alleged that 21 of the 28 people charged had actually voted. Domínguez was not one of them.

Domínguez said she’s been a lawful permanent resident since the late 1980s, and that she applied for U.S. citizenship earlier this year. As part of the application process, she said she told an immigration agent that the only people registered to vote in her household were her husband, who previously became a U.S. citizen, and her daughter, who was born in the country.

Since then, Domínguez said she has just been waiting on the citizenship ceremony, “but it never came through.”

Instead, she was arrested Monday when she was about to leave for work as an administrative assistant.

“I never, ever in my entire life … thought this would ever happen to me,” she said.

Acting U.S. Deputy Atty. Gen. Trent McCotter stands next to a display showing photos of people charged with illegally registering to vote during a news conference on Monday.

(Jae C. Hong/AP Photo/Jae C. Hong)

Muñoz and his family gathered outside the courthouse. Muñoz, who declined to comment on the charges against him, said he’d been up to have coffee early that morning when he heard the commotion outside. Agents said if he didn’t open the door, they’d break it down.

He described seeing helicopters, at least eight cars and several agents from different agencies descending on his home, and recalled thinking, “What movie am I in?”

“That’s a lot of money. Taxpayers paying for that,” he said. “They could have sent me a letter saying report to the court.”

Muñoz — who said he came to the U.S. legally in 1975 and has “paid all my taxes” since — said he explained to the arresting agents that he’d had six surgeries recently and they “didn’t care.” He said he didn’t learn about the charges against him until four hours later.

Muñoz’s son, Omar Muñoz Jr., questioned why federal agents didn’t take his father’s age and ailments into consideration.

“We understand that there’s a procedure that has to be addressed at court. But 5 in the morning, handcuffed? It’s just the way everything was done, and what my mom had to go through. It’s not just an impact on my father’s health, but also on my mom,” he said. “There is a law, we understand that. But innocent until proven guilty.”

Muñoz’s wife, Esmeralda, echoed her son’s questions about why so many agents were deployed to their home.

“Seriously? All these people just to come for an elderly person,” she said she told a federal agent. “It’s unbelievable.”

While Republican Steve Hilton has spent months jackrabbiting around California during his long-shot bid for governor, Democratic front runner Xavier Becerra just recently emerged from quasi hibernation and stepped into political daylight.

Hilton has blasted Becerra as taking the state’s voters for granted, failing to hold public campaign events to explain his detailed plans to address California’s many ills. Despite pledging to participate in multiple debates, Becerra brushed aside several invitations, agreeing to just a solitary one-hour face-off against Hilton on CNN in late September.

That month, Hilton held 14 public events, a dozen more than Becerra, but the Democrat’s spokesperson said he appeared at multiple functions sponsored by other groups. Hilton wasn’t buying it.

“He is a useless nothing, a totally unaccomplished pipsqueak who is so smug, so arrogant, so entitled, that he somehow thinks he’s owed this job just because he was picked as a useful puppet by the Sacramento machine,” Hilton, a former Fox News commentator and British political strategist, said last week in West Sacramento.

On Oct. 10, Becerra, a longtime member of Congress and Biden’s secretary of the U.S. Department of Health and Human Services, scoffed at his GOP rival.

“Uh, hello?” Becerra said sarcastically to reporters in Sacramento after being asked about his absence from the campaign trail.

“That Steve Hilton doesn’t see me on Fox News is his problem, not mine. I am gonna talk to voters,” Becerra said, rattling off a list of his recent campaign events. “I will talk to them until November the 3rd, and then I’ll be ready to talk to voters and taxpayers and the people of California when I’m the next governor.”

On Thursday, Becerra held a news conference in downtown Los Angeles with Latino leaders and famed Mexican actor Eugenio Derbez urging voters to turn out despite alleged intimidation efforts by the Trump administration.

On Monday, he held get-out-the-vote events in Santa Clarita and Glendale, shortly after he campaigned for former state Sen. Richard Pan, a congressional candidate, in Sacramento, and urged voters to cast their ballots early at an event in Santa Rosa. In September, Becerra promoted Proposition 1, a proposal on the November ballot that would allow the state to sell nearly $11.3 billion in bonds to fund affordable housing.

“We know we can get these men and women who are wearing these orange vests to work and keep them working, so they can afford to buy a house if we pass Proposition 1,” Becerra said, standing alongside union members in front of a chain-link fence encircling a vacant lot in North Long Beach.

Gubernatorial candidate Xavier Becerra held a news conference in Long Beach on Sept. 4 to highlight his housing agenda.

(Allen J. Schaben / Los Angeles Times)

Long Beach Mayor Rex Richardson, who endorsed Becerra in April and appeared at the housing event, pushed back on the notion that Becerra is taking the election for granted after winning a top spot in the primary, positioning him to be the first Mexican American elected governor of California.

“I’ve seen firsthand the work that has taken place under the radar that may not be explicitly, openly political or openly be seen as campaigning, but it is the kind of thing you want to see,” Richardson said in an interview on Thursday, adding that he saw Becerra meeting with elected officials of both parties, the mayors of the state’s largest cities and labor leaders. “I’ve seen a very active candidate that has been making sure that real time was put into building relationships that will ultimately translate to a successful governorship, because that’s the goal. I mean, ultimately, what we want is a leader who has the relationships to lead our state.”

Becerra’s campaign said that the candidate has frequently met with voters since the primary without press coverage to hear from Californians, and that he would be a frequent public presence in the weeks before the election, when “voters really get engaged, when ballots land in their mailbox,” said spokesman Jonathan Underland.

“People have incredibly busy lives. They are worried about affording their healthcare, putting food on the table, paying for gas to fill their tank,” Underland said. “What is at the forefront of Secretary Becerra’s mind is the very real problems that Californians are facing every day.”

In contrast, Hilton has been publicly barnstorming California since the June primary.

Becerra’s schedule is not surprising given Democratic dominance in California, where the party’s registered voters outnumber Republicans nearly 2 to 1. While appearing at parades, pancake breakfasts and in voters’ living rooms can be effective for candidates running in local campaigns, the most effective way for candidates to reach voters in a state as vast as California is through sustained advertising buys, which can cost tens of millions of dollars.

“If you’re the Democrat running in California, the operating theme of your campaign is do no harm and measure the drapes and figure out how you’re going to put an administration together and what is the tone that you’re going to set for that administration,” said Tim Rosales, a veteran GOP consultant who led businessman John Cox’s unsuccessful 2018 gubernatorial campaign and previously worked on Arnold Schwarzenegger’s successful effort to replace Gov. Gray Davis in the 2003 recall campaign.

Newsom was more active in the 2018 general election campaign against Cox than Becerra has been this year, but Rosales argued that could be because Becerra views it as the final chapter of his political career, which also may have been the case with former Gov. Jerry Brown in his 2014 reelection campaign. Newsom, however, is pondering a 2028 run for the White House.

“This is potentially more of a swan song for Xavier Becerra, the icing on the cake for a long and distinguished political career, and for Gavin Newsom, it was a stepping stone,” Rosales said.

Becerra has raised $40.5 million, as of Friday, while Hilton has raised $29 million, according to the fundraising disclosure reports filed with the state. Those figures do not include the exponential advantage that Becerra had in independent expenditure committees’ spending over Hilton in the primary.

Veteran Republican strategist Rob Stutzman, an advisor to Schwarzenegger, said that while Becerra will almost certainly be the state’s next governor, he should be cautious about his approach weeks before the November election.

“What he needs to be careful of is a big Democratic night across the United States that looks muted in California, and if that happens, the analysis will be that it’s his fault,” Stutzman said. “He should want to optimize his political capital as the clear leader of his party now in California. So he has to be a little careful of leaving some political capital on the table by not creating a stronger brand over the next three weeks.”

The last gubernatorial race that was viewed as competitive took place in 2010 between Brown and former eBay chief Meg Whitman, then a Republican who spent $144 million of her personal wealth on her campaign.

That contest drew national attention, but Brown beat Whitman by nearly 13 percentage points. Every gubernatorial election since that race has been sleepy and ignored in national politics, with Democratic candidates coasting to victory. The state has seen contentious gubernatorial primaries, notably in 2018, and this year, when the Democratic field was so crowded that party leaders urged low-polling candidates, including Becerra, to drop out.

He won the top spot in the primary after then-Rep. Eric Swalwell (D-Dublin) dropped out amid rape and sexual assault allegations.

Mason Harrison, who worked for Republicans Carly Fiorina in a 2010 Senate bid and Neel Kashkari in a 2014 gubernatorial campaign, and worked with Hilton on business ventures but is not affiliated with his campaign, noted that while Brown was well-known by Californians because of decades in the public eye, Becerra is not. However, given Democrats’ edge in the state’s voter registration, as well as current headwinds against the GOP in California and across the nation, it’s unsurprising that Becerra has been less visible than Hilton. Harrison compared Becerra’s campaign to Biden’s in 2024 before the then-president bowed out of the race.

“The calculus seems to be, the more he gets out on the campaign trail, the greater the potential of him having a misstep in an interview or getting some tough question that he’s going to have to answer, and what’s the advantage of that in a year when you’re running against a party that, by historical standards, stands to lose significantly,” Harrison said. “Why make it more competitive by making yourself more vulnerable?”

Indeed, Becerra previously committed to multiple debates, but has participated in one so far and appears unlikely to agree to another. Still, he has repeatedly disputed the notion that he is taking the race for granted.

“If I were trying to coast, I’d be out on the coast right now instead of here with you all,” he told reporters one sweltering August afternoon in Little Tokyo in downtown Los Angeles, an area he represented in Congress.

Xavier Becerra, center, walks with Helen Ota, left, president of the 2026 Nisei Week Foundation, while touring businesses and meeting with business community leaders at Japanese Village Plaza in Little Tokyo in Los Angeles on Aug. 18.

(Genaro Molina / Los Angeles Times)

While there, he met with local business and community leaders. And he bought merchandise and delicacies, including a sweet mango mochi wrapped in a thin, fluffy pancake at a 123-year-old Japanese confectionery.

Times staff writer Nicole Nixon contributed to this report from Sacramento.

In March 2025, when California ran out of Medicaid funds to pay doctors and hospitals, the state borrowed $3.4 billion to keep the program afloat. It was, as a spokesperson for Gov. Gavin Newsom insisted, nothing new. Indeed, a handful of times over the years, the state had taken out internal, short-term loans to sustain its healthcare program for poor and disabled people.

The unprecedented move came a few months later, when Newsom and Democratic state lawmakers agreed to pay down the loan — which grew to $4.4 billion — over 10 years instead of later in the year. California’s healthcare safety net, it seemed, was buckling.

Rising healthcare costs systemwide were partly to blame. But so were several state-led expansions that made California’s Medicaid program, known as Medi-Cal, one of the nation’s most generous.

Now, with congressional Republicans’ One Big Beautiful Bill Act expected to reduce federal Medicaid spending by more than $900 billion over 10 years, California and dozens of other states must contemplate the limits of their generosity. The problem is particularly acute in the nation’s most populous state, which spends more on Medicaid than New York and Texas combined.

“We know we can’t afford to serve everybody we want to serve in the model that we have today,” said Mark Ghaly, the former top Newsom health official who now co-chairs the Future of Medi-Cal Commission, a 29-person panel with the goal of modernizing and sustaining California’s Medicaid program for those who need it. “What can we do differently? What can we do smarter?”

The 2025 law that Newsom, a Democrat, has dubbed President Trump’s “Big Ugly Bill” is expected to leave millions more Americans without health insurance, mostly because of new work requirements. It also curbs the use of healthcare provider taxes and other strategies states have deployed to maximize federal funds. Some state lawmakers and consumer advocates have argued the federal cuts, along with rising costs, present an opportunity for the next governor to overhaul a program plagued by long appointment wait times, low reimbursement rates for healthcare providers, and volatile financing.

“If we continue to just give millions and millions into the same system and expect something different — I’m sick and tired of that,” said Caroline Menjivar, a Democratic state senator representing a Los Angeles-area district where roughly half of constituents rely on Medi-Cal.

Democratic lawmakers, who have often clashed with Newsom on Medi-Cal rollbacks, succeeded in getting him to delay a number of painful cuts until 2027 in hope that a new governor might reverse them.

So far, neither of the gubernatorial candidates running in the November election to replace Newsom has offered substantive proposals for a program that covers 1 in 3 Californians — roughly 13.6 million people.

Republican Steve Hilton, a former Fox News commentator, wants to pare back Medi-Cal eligibility and has promised to end coverage for immigrants without legal status, citing that benefit as an example of “wildly unsustainable” state spending. Democrat Xavier Becerra, who has spent decades trying to expand government-funded healthcare, has promised to protect Californians from the massive federal cuts and find and cut billions in administrative waste.

Expanding coverage

President Johnson signed the law that established Medicaid and Medicare in 1965 to cover certain low-income groups, such as families with children, older people and those with disabilities. Over the last six decades, states have substantially widened that pool, most notably under the Affordable Care Act’s Medicaid expansion to childless adults.

Starting in 2024, California offered healthcare coverage to all low-income residents, regardless of age or immigration status, although lawmakers scaled that back this year. At the same time, the state opted to cover a slew of non-mandated benefits such as physical therapy, hospice care and housing assistance.

“California has always struggled with wanting to have as broad a program as possible but then having to figure out a way to pay,” said Jennifer Kent, who oversaw Medi-Cal under Gov. Jerry Brown, a Democrat. “There is no population that we have met that we don’t want to offer coverage to, and we’ve never met a benefit that we don’t like.”

Since 2010, California’s Medi-Cal enrollment has nearly doubled while spending has ballooned from $50 billion a year to $222 billion. It now makes up more than 40% of overall state spending, according to the nonpartisan Legislative Analyst’s Office.

Conservatives argue the program is bloated and rife with fraud. They say the federal changes will force states to refocus resources on the neediest.

“The role of the safety net programs was just that — to be a safety net,” Hilton said in an interview. “I don’t think it’s a particularly positive boast to say 40% of Californians should be on a program that was designed for people living in poverty.”

Becerra declined an interview request.

Nelly, a 59-year-old from Los Angeles County, was one of millions who have benefited from the state’s Medi-Cal expansion, but she was initially reluctant to sign up.

For years after she left her corporate job to care for her ailing mother, Nelly said, she didn’t consider applying. She remained uninsured until three years ago, when she woke up and couldn’t see out of her left eye.

She enrolled in Medi-Cal in the emergency room. It now covers her appointments with specialists and transportation to and from. While her condition may exempt her from the new Medicaid work requirements, Nelly said, she’s still worried about losing coverage after experiencing numerous paperwork hiccups simply trying to renew.

Nelly, who asked that her full name not be used because she hasn’t told her family about her condition, said she understands not everyone on the program may need it. But, she added, “it should be there for someone like me.”

Tough choices ahead

When Republican state lawmakers got wind of Newsom’s plan to stretch the debt repayment over a decade, they accused Democrats of trying to “paper over” the state’s structural deficit.

“This leaves future governors and legislatures to clean up the mess,” stated a July 2025 memo from GOP senators. The Legislative Analyst’s Office later called the maneuver “unusual.” That could leave Becerra, the favorite to succeed Newsom in the overwhelmingly liberal state, as the face of staggering changes to a program he spent his career defending.

More than 2 million Californians under age 65 could lose health coverage over the next four years as a result of the state and federal policy changes, according to recent estimates by the UC Berkeley Labor Center and the UCLA Center for Health Policy Research. At least 730,000 residents have already disenrolled since June 2025.

State agencies are scrambling to implement new federal work requirement rules for adult Medicaid enrollees under 65, hoping to automate as much verification as possible to blunt coverage losses. And in 2028, states will be required to charge some enrollees fees for many services, making it harder for them to maintain coverage.

Disability rights activists say new asset limits will prevent Californians from getting needed home care, which they say is more cost-effective and humane than nursing homes. Counties, deemed by state law to be healthcare providers of last resort, say they need immediate funding for the millions of uninsured patients they anticipate in the new year.

Hospital administrators have urged policymakers to help them keep their facilities stable, and the state’s most recent budget included some $390 million to assist public and distressed hospitals.

Martin Luther King Jr. Community Hospital in Los Angeles treats five times the patients it was designed to serve, and 80% of patients are uninsured or on Medi-Cal. Demand is so high in the chronically underserved area, MLK Community Healthcare CEO Elaine Batchlor said, that the hospital has erected tents in the parking lot. Most emergency room patients are now treated there.

“We already have an extremely overcrowded, overburdened emergency department,” MLK Community Healthcare CEO Elaine Batchlor said. “Insured care will turn into uncompensated care, and the financial burden for that will fall on providers.”

Becerra has said he opposes the state’s recent freeze on enrollment for adult immigrants without legal status, as well as new monthly premiums set to take effect next year, saying such moves will only saddle taxpayers with higher bills for ER care.

If elected, Becerra will probably need to wade into the politically toxic debate over whether to raise more revenue, cut benefits further, or do both.

Aside from promising to find and eliminate billions in administrative waste from the industry, the nation’s former top health official has not explained how he would cobble together the tens of billions of dollars the state is likely to need just to maintain status quo.

The next governor must tread carefully, Kent warned. “When people come and say, ‘Well, you should just do this because it’s the right thing,’ ” she said, “all of those right things have fiscal consequences.”

Mai-Duc writes for KFF Health News, a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF — an independent source of health policy research, polling and journalism.

California Republican gubernatorial candidate Steve Hilton dove deep into his housing platform and lobbed a few attacks at his Democratic opponent, Xavier Becerra, during a town hall with Los Angeles news outlets Tuesday.

Hilton also pointed to some disagreements with President Trump, providing daylight between himself and a president who remains deeply unpopular in California, during the event hosted and livestreamed by the Los Angeles Times and LAist.

Democratic Gov. Gavin Newsom’s final term ends in early January, providing California voters the opportunity to select a new governor at a time of conflict between the state and the Trump administration over environmental policies, immigration, healthcare and other pressing issues.

Ballots already have started to arrive in California voters’ mailboxes ahead of the Nov. 3 election.

Here are the top takeaways from the discussion with Hilton:

Walking the tightrope on Trump

Republicans running for statewide office already have an uphill battle because of California’s heavily Democratic electorate. It’s an acute challenge this year, campaign experts say, because many Democratic voters are itching to help their party regain control of Congress and neutralize Trump’s agenda.

Trump endorsed Hilton in April, which helped the former Fox News host pull ahead of his GOP rival, Riverside Sheriff Chad Bianco, and secure the second-place spot in the primary election, behind Becerra.

On the campaign trail, Hilton has remained supportive of Trump and said Democratic policies, not the war in Iran, are to blame for high prices.

Pressed to name an instance where he disagrees with the president, Hilton named federal funding cuts for the University of California, threats to withdraw Customs and Border Protection agents from airports in states with sanctuary policies, and the federal government buying stakes in California-based companies.

The Republican said those differences are rooted in his strong support for states’ rights.

“The broader point I want to make, and you can track this back to the commentary and what I’ve written over the years, is I’m a strong believer in decentralizing power,” he said. “I think there’s far too much involvement of the federal government in our affairs in California, and I’m going to be a very strong advocate for bringing those powers back in all sorts of ways.”

Gas prices, taxes and housing permits

Hilton described California’s cost of living as “a nightmare” and a major contributor to residents and businesses moving out of the state.

He laid out an affordability plan, which he refers to as “Califordable,” that he would prioritize if elected governor. His plan includes:

• Ending income taxes for Californians who earn $150,000 or less.
• Slashing oil industry regulations and clean energy mandates for utility companies to achieve $3 gas and lower electric bills.
• Ushering in a new construction boom of single-family homes, including by developing 10 new cities around the state, and capping government fees on newly constructed houses.

He blames the state’s affordability woes on Democrats, who have controlled the state legislative seats and held every elected statewide office since 2009.

“It’s not just that it’s time for some change in California, it’s time for balance. It’s time to try something different after 16 years of doing it the same way,” he said.

Republican gubernatorial candidate Steve Hilton said he does have some policy differences with President Trump during a town hall at the Los Angeles Times Building on Tuesday in El Segundo.

(Ronaldo Bolanos/Los Angeles Times)

Hilton said he would stop enforcing laws requiring communities to meet housing production goals and instead focus on building in undeveloped areas of the state that want new homes.

“We’ve got this attitude that the only place you can build is inside what’s currently developed, and that’s motivated by a desire to stop traffic and sprawl and all these things. But the consequence of that is that you end up finding [it] almost impossible to build anything” because of permitting battles and lawsuits, he said. “My plan is to open that up so that we build outwards, not just upwards, increasing the amount of space we use for housing.”

How he would pay for it all

Hilton said that Newsom and Democratic lawmakers have gotten accustomed to spending big and that he wants to return California’s state budget to its pre-pandemic size.

Earlier this year Newsom signed a budget just shy of $352 billion. His first budget as governor, in 2019, clocked in at nearly $215 billion.

The growth occurred during a time “when around 2 million people on net have moved out of the state,” Hilton said. “So we’re spending twice as much for a big reduction in population and worse results.”

He said he could offset the tax cuts by ending funding for high-speed rail, trimming state agencies by 5% and cracking down on Medicaid fraud. Together, he estimates those cuts would save about $25 billion annually. He has also promised to end state-funded healthcare for undocumented immigrants and to hollow out agencies that regulate the state’s air quality and coastlines.

Another round of attacks on Becerra

While he largely stayed focused on policy, Hilton criticized Becerra’s record as U.S. Health and Human Services secretary and dinged him for skipping the town hall.

“Looking forward to perhaps one day having another chance to sit down with my competitor in this race, Xavier Becerra. We’ve had one debate. He promised that there would be debates, plural. Not to be today. But hopefully we can have that conversation because Californians deserve a conversation about the future of our state,” he said during his opening remarks.

On Monday, Hilton attacked Becerra for having “pulled out” of the debate, though the Democratic candidate never agreed to attend a debate proposed by The Times and LAist. Becerra’s spokesperson said the campaign declined the invitation because of a full campaign schedule.

In the weeks following the June primary election, Becerra made himself scarce on the campaign trail and attended few public events. In August, he told reporters there would be multiple debates. He and Hilton faced off last week in an hourlong debate on CNN but no other debates have been announced.

Offshore wind projects “grotesque,” Hilton says

At a time when the Trump administration has systematically dismantled climate and environmental policies, Hilton took care to cast himself as an environmentalist who is concerned about climate change.

He criticized many of the policies favored by Democrats, however, as a “very one-dimensional way of thinking” and offered a more business-friendly approach to addressing climate change:

• Planting 3 billion trees and restoring wetlands.
• Expanding the use of climate-friendly geothermal energy near places such as the Salton Sea and Sonoma and Modoc counties.
• Expanding oil production in California, which he said reduces the need to import foreign oil on tanker ships that spew carbon emissions.

“So that’s a way of reducing carbon emissions that doesn’t burden working people and small businesses with the highest energy costs in the country. We’ve got to get the balance right,” Hilton said.

Hilton aligns with Trump’s vehement opposition to offshore wind projects, a potential source of abundant renewable energy. This year, the Trump administration announced deals to pay wind project developers billions to abandon U.S. wind leases off the coasts of California, North Carolina, New York and New Jersey.

“I think offshore wind is an absolute abomination. I mean, you look at beautiful Morro Bay or Humboldt up in the northern part of our state,” Hilton said. “The industrialization of our coastline that offshore wind would create, I think, is just grotesque, and I’m dead against it.”

Working across the aisle

When asked how he would work with a Democratic majority in the state Legislature, Hilton said he has experience doing it — as an advisor to former United Kingdom Prime Minister David Cameron, he shared an office with a member of the opposite party.

“We worked together very well. Didn’t agree on everything,” he said. “That would be my attitude. I’m very open. I’m not tribal. I’m not particularly partisan. I’m a pragmatic, problem-solving kind of person, and I’m looking forward to working with the Legislature.”

He said he would press the Legislature to cut spending and “the endless number of bills that they pass every year. … But I want to work together to reduce costs for Californians.”

Hilton also found alignment with Democrats who ran in the gubernatorial primary, including former Orange County Rep. Katie Porter, San José Mayor Matt Mahan and former Los Angeles Mayor Antonio Villaraigosa.

“Katie Porter in the primary … actually endorsed my tax plan. Matt Mahan and I agree on a lot of things to help” cut costs and speed up housing constriction, he said. “Antonio Villaraigosa, we agreed on a lot of things to do with energy policy. So I think there are Democrats who we’ll be able to work with to get consensus on some of the things that we need to get done.”

Sen. Bernie Sanders, a hero among the nation’s progressive voters, stumped in Southern California on Monday for a wealth tax on the California ballot in November that has drawn hundreds of millions of dollars in campaign spending.

“What you are showing people from coast to coast and all over is that, yes, we can take on the greed of the oligarchs,” said Sanders (I-Vt.), who called Proposition 40 the most important ballot measure in the country. “Yes, we can create an economy and a government that works for all of us, not just the 1 percent.”

Sanders name-checked billionaire tech founders including Elon Musk of SpaceX, Mark Zuckerberg of Meta and Google co-founder Sergey Brin, whose mentions were repeatedly met with boos from the crowd gathered at the Novo in downtown Los Angeles.

Labor leaders, speaking earlier on Monday at a union training facility in La Palma, argued that although the billionaires tax is billed as a one-time tax on the assets of the state’s wealthiest residents, it includes a loophole that would allow state lawmakers to tax the savings and retirement accounts and home equity of all Californians.

“In the trades, we know you always read the blueprints and you always read the fine print,” said Xochitl Medrano, the political director for the district council of the Ironworkers of the State of California and Vicinity. Medrano was surrounded by union workers chanting, “No on 40!”

“Our workers are not billionaires; they are working people. After 20, 30, or even 40 years of breaking their backs on the job sites, our members have the opportunity to have a decent pension, some retirement savings, and equity in a home that they’ve been working to pay off,” she said. “That’s not wealth handed to them. That’s sweat equity. … We won’t stand by and let a tax that’s supposed to target billionaires turn into a trap door for working families.”

Proposition 40 is among the most contentious issues on the Nov. 3 ballot. The measure was crafted by a healthcare union to offset $100 billion in impending federal healthcare funding cuts approved by congressional Republicans and signed by President Trump last year. Millions of Californians could lose their healthcare coverage because of those cuts.

There are two opposing measures on the November ballot, Propositions 41 and 42, that would nullify the billionaires tax if either receives more votes.

About 45% of likely voters supported Proposition 40, while 42% opposed it and 13% were undecided in a late September poll by UC Berkeley and the Los Angeles Times. That’s a decline in support compared with a poll six weeks earlier, when 48% of likely voters supported it while 41% opposed it.

The proposal has drawn more than $300 million in campaign contributions, nearly all against it. Ballot measures are not subject to caps on campaign donations.

Sanders was joined by Rep. Ro Khanna (D-Fremont) and artists including the rapper Common, who called for “them billionaires to pay up” between freestyle verses. Shepard Fairey, known for his famous portrait of President Obama, unveiled banners in support of the wealth tax campaign, which served as a backdrop on the event stage.

Rally attendee Datosha Williams, an SEIU-UHW member who works in healthcare customer service, said Proposition 40 is a backstop to federal healthcare cuts, which could lead to hospital closures around the state.

“My biggest fear is that I will see some of my coworkers lose their jobs,” she said. “My biggest fear is that my 8-year-old son, who is asthmatic, will have long waits in an ER.”

At the event at the Ironworkers Training Center in La Palma organized by labor leaders to oppose the wealth tax, apprentices attended workshops about rigging and collective bargaining rights.

“We’re not opposed to making the wealthy pay their fair share. We’re not opposed to creating a high-quality and low-cost health insurance plan for Californians,” said Andrew Gonzales, the council representative for the Los Angeles and Orange Counties Building and Construction Trades Council. “We just don’t think Prop. 40 is the right vehicle to go about that.”

Gonzales pointed to the volatile state budget’s dependence on tax revenue from wealthy Californians, some of whom have proactively moved out of the state because of the proposal.

“That’s already having an immediate impact to the state’s budget,” he said. “So we already see the danger that can occur.”

Foes of Proposition 40 attend a rally on Monday at the Ironworkers Training Center in La Palma.

(Eric Thayer/Los Angeles Times)

Oct. 1, 2026 3 AM PT

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SACRAMENTO — Supporters of a high-profile Nov. 3 ballot measure that would require Californians to show identification when they vote accused state Democratic leaders of falsely stating that President Trump has endorsed the initiative.

Republican Assemblymember Carl DeMaio of San Diego, one of the measure’s authors, on Thursday called Democratic gubernatorial candidate Xavier Becerra a “bald-face liar” over comments he made during Wednesday’s gubernatorial debate hosted by CNN.

Becerra said during the debate with Republican Steve Hilton that Trump was instrumental in the voter ID measure, Proposition 39, qualifying for California’s November ballot. Trump for years has tried to cast doubt about American elections, and unsuccessfully pushed Congress to pass a strict voter ID and proof of citizenship measure known as the SAVE America Act.

“Prop. 39 is an initiative that is backed by Donald Trump,” Becerra said during the hourlong debate. “He couldn’t get his SAVE Act out of Congress, which tries to interfere in elections. So he’s gone around the country and put initiatives on the ballot. In California, it’s Prop. 39.”

Though Proposition 39’s provisions are less restrictive than those in the SAVE America Act, its proponents echo Trump’s unsubstantiated claims that voter fraud and noncitizen voting are widespread in California and therefore stricter ID measures are needed.

DeMaio said the ballot measure qualified for the ballot because of strong support from California voters, including many Democrats and independents. Supporters collected more than 1 million petition signatures in support of the measure, surpassing the 874,641 needed to qualify.

“It was not put on the ballot by Donald Trump,” said DeMaio, who also founded the conservative advocacy group Reform California.

Becerra is “showing that he’s not willing to be truthful with California voters,” DeMaio said.

Meredith Shields, press secretary for the Yes on Prop. 39 committee, reiterated that Trump hasn’t taken a position on the initiative.

“The opposition will do anything to advance their cause and protect their power,” Shields said. “It will come as a surprise to no one that career politicians don’t always tell the truth, and they certainly aren’t telling the truth here.”

The White House didn’t immediately respond to a request for comment about Trump’s position on Proposition 39.

The measure would require anyone voting in person in California to present a government-issued ID, and those voting by mail ballot to include the last four digits of the ID number provided when they registered to vote. State and county election officials would be required to verify the U.S. citizenship of registered voters using government data and publicly report the findings.

The ballot measure is backed by DeMaio and several deep-pocketed Trump supporters. Julie Luckey, director of the group Californians for Voter ID, is the mother of billionaire tech entrepreneur Palmer Luckey, a major Trump fundraiser and Republican donor. Richard Uihlein, chief executive of the shipping and packing supplies company Uline, has given the campaign $17 million.

Representatives for Becerra and the No on Prop. 39 campaign on Thursday argued that Trump pushed for voter ID in California before Proposition 39 officially qualified for the ballot, pointing to a March 11, 2025 news release on Reform California’s website acknowledging Trump’s support.

In January 2025, Trump endorsed “CA Voter ID” as a “condition” for continued federal funding to the state, according to the release, which was updated this year with an editor’s note to clarify that Proposition 39 hasn’t been endorsed by Trump.

“Carl DeMaio knows Prop. 39 is central to Trump’s voter suppression playbook, and he’s doing everything he can to hide that from voters,” said Jonathan Underland, spokesperson for Becerra’s campaign.

The No on Prop. 39 campaign repeatedly has sought to link Trump to the measure, which has not been a surprise given that the Republican president remains extremely unpopular among a majority of Californians.

“The fact that Donald Trump has endorsed it tells you everything you need to know,” Assembly Speaker Robert Rivas (D-Hollister) and Senate pro Tempore Monique Limón (D-Santa Barbara) said in a statement released by the “No” campaign this year.

U.S. Sen. Alex Padilla (D-California) suggested to reporters at a rally organized by the “No” campaign last month that Trump is behind Proposition 39.

“Carl DeMaio has been the face of this in California, but don’t be fooled into thinking this has nothing to do with Donald Trump and the MAGA agenda nationally,” Padilla said.

Separately, DeMaio on Thursday accused Secretary of State Shirley Weber, another Democrat, of falsely stating that Proposition 39 would end California’s vote-by-mail system. The vast majority of Californians use mail-in ballots.

Weber, in a television interview that aired this week on KCRA in Sacramento, said the state already requires ID for those who register to vote.

“But if you tell me everybody has to take their ID to the poll, Californians should be concerned because 90% of them don’t want to do that,” she said. “They want to vote by mail, and you would effectively eliminate vote by mail.”

DeMaio questioned whether Weber understood what Proposition 39 proposes.

“If she truly is concerned about trust and confidence in our elections, she should start with her own behavior by refraining from spreading misinformation about Prop. 39 and our election,” he said.

Weber, when asked about her statement this week, said in an email to The Times that Proposition 39 would “cause disruption” in the state’s mail-in voting system because it would require voters “to write private personal information on the ballots.”

A Weber campaign spokesperson followed up with another response Thursday.

“What Dr. Weber actually said was that, if passed, this very poorly drafted proposition could cause people to decide not to vote by mail because it creates unnecessary and burdensome steps,” the spokesperson said.

SACRAMENTO — Days after signing a package of bills to rebuff aspects of federal immigration enforcement in California, Gov. Gavin Newsom vetoed two bills from Los Angeles lawmakers that targeted public employment for federal agents.

One of the bills, backed by Speaker Robert Rivas (D-Hollister), would have blocked agents and contractors who worked to enforce federal immigration laws from state and local jobs in California, including for law enforcement agencies. It was called the “Get the Feds Out” or “GTFO” Act.

Newsom said the bill goes “a step too far.”

“It is a mistake to discourage empathetic and qualified Americans from working in the federal government, or choosing to leave long-standing employment with the federal government because they find the current administration’s policies and tactics reprehensible,” the governor wrote in a veto letter to the Legislature made public on Wednesday.

The governor added that hiring for public employment already includes personal conduct evaluations. He emphasized the “horrific tactics” used by immigration agents during President Trump’s second term but said it is the responsibility of Congress to hold the administration and individual agents accountable.

Newsom signed a similar bill that prevents federal agents from becoming police in California if their federal badge was revoked for misconduct.

While he expressed disappointment in the veto, Assemblymember Mark Gonzalez (D-Los Angeles), the author of Assembly Bill 1896, applauded Newsom for signing “a strong package of legislation that will protect Californians and stand up for our immigrant communities.”

“From the beginning, the GTFO Act was about a simple principle: We should never use public dollars to reward conduct that has caused fear, terror, and pain in our communities. I am proud to have stood alongside my brother, Speaker Rivas, in this fight and this fight is not over,” Gonzalez said in a statement to The Times.

A spokesperson for Rivas said while the proposal did not become law, “Californians know Trump’s immigration agenda is failing and doesn’t keep anyone safe. That’s why Assembly Democrats are leading the nation in holding ICE accountable. The Speaker thanks his colleagues for delivering real results this year.”

The outgoing governor also vetoed a proposal from Assemblymember Isaac Bryan (D-Culver City), Assembly Bill 1537, that would have prevented sworn law enforcement officers from taking secondary employment or contract jobs for immigration enforcement.

Newsom took issue with the prospect of prohibiting “secondary employment law enforcement officers choose to do in their free time.”

“State and local peace officers already must abide by specific standards and rules, including ones that apply to their personal conduct,” Newsom wrote in the veto letter. “Any officers who violate those standards are held accountable through investigations that may culminate in their peace officer status being suspended or revoked entirely.”

Bryan, through a spokesperson, declined to comment on the veto.

Earlier this week, Newsom signed 21 bills aimed at federal immigration enforcement, including bans on electric shock gloves and face coverings for law enforcement. Other laws impose a 25% tax on companies that operate private detention centers, along with additional oversight of the facilities.

“No tax will stop ICE from deporting criminal illegal aliens to make California safe again,” a spokesperson for the Department of Homeland Security said in an email. “While California sanctuary politicians continue to release pedophiles, rapists, gang members, and murderers onto their streets, our brave law enforcement will continue to risk their lives to arrest these heinous criminals and make California safe again.”