California voters rejected Proposition 40, a proposed one-time 5% tax on the net worth of residents whose wealth exceeds $1 billion, in a defeat called by The Associated Press. Most of the proceeds would have replaced federal healthcare funding cuts, while 10% would have supported education and food-assistance programs. SEIU United Healthcare Workers West said the measure was needed to replace an estimated $100 billion in federal healthcare funding that California could lose over five years. The opposition raised roughly 10 times as much as supporters. Building a Better California, a political action committee backed by billionaires and also supporting measures intended to nullify the tax, raised more than $333 million, with Google co-founder Sergey Brin contributing more than $100 million. More than $400 million was spent across Proposition 40 and two related measures. Opponents, including Gov. Gavin Newsom and several traditional Democratic allies, argued that wealthy residents could leave California, undermining tax revenue and the state budget. Supporters included Sen. Bernie Sanders and other progressive leaders. The measure drew stronger backing from voters under 30 and households earning less than $100,000, while about seven in 10 voters aged 65 and older opposed it. The result also highlighted a broader political dispute over wealth taxation ahead of the 2028 Democratic presidential primary.