California Prop 40 Fails: Hollywood Workers Lose Healthcare Safety Net

California voters rejected the proposed billionaire tax in the early hours of Wednesday, November 4, 2026.

The no side held a 13-point lead with about half the votes counted. That gap represented roughly one million votes. The margin made passage of Proposition 40 very unlikely.

The measure would have imposed a one-time 5 percent tax on the state's approximately 200 billionaires. Individuals with net worths above $1 billion would have paid the levy. The revenue aimed to shore up California's healthcare fund. It sought to offset federal cuts to Medi-Cal and other coverage programs for low-income residents.

Entertainment workers stood to gain from the measure. The tax could have provided a backstop for freelancers and lower-paid staff who lose employer or union-sponsored insurance. Those workers include grips, set decorators, costume designers, editors, and production assistants. Actors also face rising hurdles to maintain coverage. Scripted television orders have dropped sharply in recent years. Productions increasingly shoot in other countries to cut costs. SAG-AFTRA performers have struggled to meet quarterly deadlines requiring $28,000 in earnings.

Cheyenne Jackson, an actor known for roles in American Horror Story, 30 Rock, and Glee, noted the current difficulty for performers. He launched One Job Away last month. The project identifies actors who need only a few more gigs to reach the SAG-AFTRA annual minimum for health insurance. Jackson said he has received hundreds of inquiries from union members at risk of losing coverage.

Data from the UC Berkeley Labor Center shows that roughly 22 percent of workers in the arts, entertainment, recreation, and accommodation industry were enrolled in Medi-Cal in 2023. The Motion Picture Television Fund assisted more than 1,100 low-income or uninsured industry workers in obtaining health coverage in 2024. This support included Medi-Cal and Covered California plans.

The campaign for Proposition 40 cost more than $350 million. Opponents and allied campaigns accounted for over 96 percent of that spending. Sergey Brin and Peter Thiel spent heavily to defeat the measure. Mark Zuckerberg threatened to leave California if the tax passed. Steven Spielberg moved from California to New York earlier this year. The move fueled speculation about the tax, which counted intellectual property rights among assets subject to valuation. Other industry figures who could have faced the levy include George Lucas, David Geffen, and Oprah Winfrey.

Governor Gavin Newsom emerged as one of the measure's most prominent opponents. He argued the tax would drive wealthy residents and their businesses elsewhere. Newsom endorsed Proposition 42, a billionaire-backed measure headed for victory that would prohibit many future wealth taxes. Ashley Craig, a volunteer for Patriotic Millionaires, stated that Newsom set the tone for the industry's reaction to the tax.