The party narrowly endorsed the billionaire tax measure, which still faces high-profile opposition. How much will it help the Proposition 40 campaign?
A T-shirt with a campaign message is seen before the start of a rally led by U.S. Sen. Bernie Sanders, Independent of Vermont, during the campaign kickoff for the California Billionaire Tax Act at The Wiltern in Los Angeles, on Feb. 18, 2026. Sanders is seeking the support of California voters for a November’s ballot initiative of an emergency tax on billionaires to help the state’s healthcare system. Opponents argue the measure, if passed, will push wealthy residents and their tax dollars out of the state. (Patrick T. Fallon/AFP via Getty Images)
California Democrats’ internal conflict over the billionaire tax measure on November’s ballot ramped up Sunday with an endorsement from the state Democratic Party, pitting party activists against the state’s Democratic governor.
At a meeting in San Diego to take positions on Proposition 40 and other ballot initiatives, the party’s executive board voted to endorse the one-time wealth tax measure by a narrow margin of 61.7%, just above the 60% threshold needed to pass.
SEIU-UHW, the healthcare union behind the proposal, framed the endorsement vote as a huge boost to their campaign and a sign that the party is rallying behind the measure, which Gov. Gavin Newsom and some other powerful labor unions oppose.
“What it shows is that Democrats are united across California to support the billionaire tax,” union President Dave Regan told KQED. “All of the efforts by people to give a different impression have just shown to be false.”
Nancy Tung, chair of the San Francisco Democratic Party and one of the voting executive board members, disputed that framing, pointing to how contentious and tight the final vote was.
“I wouldn’t say there’s overwhelming support,” Tung said. “That ignores the fact that this barely passed.”
The endorsement followed a first vote that fell short at 59.2%. A follow-up motion to take “no position, ” which needed a supermajority vote, also failed.
“A Democratic Party endorsement in California is always going to help a ballot proposition because there are so many Democrats in the state,” Grose said. “It’s not as strong of a signal when there’s high-profile Democrats who are also opposed.”
The party endorsement doesn’t come with additional funding, messaging or organizing muscle. It allows the Proposition 40 campaign to claim party support on their mailers and ads instead of listing individual Democratic endorsers.
“Now what? The party is not going to spend $10 million to go promote Yes on Prop. 40,” Acosta said. “So whatever the Yes on Prop. 40 campaign wants to do with that endorsement, they’re going to have to figure out how to go tell the rest of the world what happened.”
Public opinion polls show early support for the measure. A May poll from the Public Policy Institute of California shows 54% of likely voters and 76% of Democrats would vote for it.
Opponents argue the measure, if passed, will push wealthy residents and their tax dollars out of the state. Newsom has also argued a billionaire tax should be enacted at the federal, not state, level.
The opposition, including Google co-founder Sergey Brin, has already spent more than $100 million to undermine the measure and is expected to shell out tens of millions more before November. The state party also voted Sunday to oppose two measures funded by Brin, Propositions 41 and 42, seen as poison pill attempts to undercut the billionaire tax measure.
“Governor Newsom, Democratic Candidate for Governor Xavier Becerra, the California Teachers Association, California Professional Firefighters, Planned Parenthood Affiliates of California, and so many others are standing together against Prop. 40 because it’s bad for our budget, bad for our economy, and bad for our future,” the No on 40 campaign said in a statement. “We need smart, durable solutions to our biggest challenges, not unreliable, untested schemes that shortchange healthcare, education, and public safety.”
Newsom’s office did not respond to a request for an interview. Becerra’s office pointed to his earlier statement to Politico warning against “half measures.”
“Every Californian must pay their fair share, and no billionaire should pay taxes at rates lower than teachers, firefighters or nurses. But this is sketchy policy,” Becerra said in the statement.
Regan said he hopes Newsom and Becerra will reconsider their positions to align with “the people who they relied on to be elected to office.”
“The fact that Gov. Newsom and Secretary Becerra are opposed, I think, says more about them than it does about Democrats,” Regan said. “They are clearly out of step with a supermajority of the voters.”
