In response to impending federal funding cuts that threaten healthcare coverage for hundreds of thousands of residents, a coalition in Los Angeles County is advocating for a new sales tax measure. The group, known as Restore Healthcare for Angelenos, is urging the Los Angeles County Board of Supervisors to place a proposal for a five-year, half-cent sales tax on the ballot for the upcoming June election.
Louise McCarthy, president and CEO of the Community Clinic Association of Los Angeles County, emphasized the urgency of the proposal, stating, “The ballot measure that we are proposing is an urgent and necessary step to stop the damage, to protect access to life-saving care.” The coalition argues that the stakes are exceptionally high as federal spending changes under H.R. 1 begin to take effect, which includes cuts to Medi-Cal that will impact millions of Californians.
The state of California anticipates losing tens of billions of dollars annually in federal funding, creating a significant gap in healthcare services. According to the coalition’s estimates, the proposed sales tax could generate approximately $1 billion each year. This revenue would support a local healthcare coverage program aimed at providing primary, emergency, and behavioral health care for individuals who may lose their Medi-Cal eligibility and lack other insurance options.
As healthcare providers highlight, the rise in uninsured individuals leads to increased uncompensated care in clinics and hospitals, which could jeopardize the quality and availability of services for all residents. The coalition is collaborating with Holly Mitchell, a member of the Los Angeles County Board of Supervisors, who presented the motion to initiate public discussion on the proposal. The board is expected to vote on the measure next month, with a deadline to secure a spot on the June ballot by March 6.
In her statement, Mitchell acknowledged the gravity of the situation, saying, “I do not take lightly asking fellow residents to consider imposing a ½ percent retail tax. This option is on the table because what’s at stake are safety net services unraveling for millions of residents.” If approved, the measure would include provisions for public oversight and audits, with a sunset date set for October 1, 2031.
Should the Board of Supervisors decline to approve the sales tax for the June ballot, the coalition plans to pursue signature gathering to qualify the initiative for the November election, according to Jim Mangia, CEO of St. John’s Community Health. This initiative aligns with broader efforts across California as state and county leaders seek innovative funding solutions to mitigate the loss of federal support.
The situation in Los Angeles is reflective of a larger trend, as healthcare advocates statewide are calling for new revenue streams to address the federal funding shortfalls. In a recent legislative hearing, health providers urged state lawmakers to explore creative funding options. Last November, voters in Santa Clara County approved a similar sales tax measure, raising local sales tax by five-eighths of a cent for five years, which is projected to generate $330 million annually for local hospitals and clinics.
Both local initiatives are distinct from a proposed tax led by SEIU-United Healthcare Workers West, which seeks to impose a one-time 5% tax on the wealth of the state’s billionaires. This measure could potentially yield $100 billion to fund healthcare and social services at the state level, although Governor Gavin Newsom has voiced opposition, claiming it may drive wealthy taxpayers away from California.
In Los Angeles, voters may face a range of tax measures this election year, including a city hotel tax and a sales tax to support the Los Angeles Fire Department. Mangia views these initiatives as complementary, stating, “We’re doing this to make sure that no matter what happens federally, statewide, residents of L.A. County will have access to healthcare.”
Recent changes introduced in the federal budget reconciliation law have raised significant concerns among social service providers. Notable alterations include new requirements for enrollees to log 80 hours per month in school, work, or volunteering starting in 2027, more frequent coverage renewal requirements, and limitations on state-imposed taxes on insurers funding Medi-Cal.
State health officials project that approximately 2 million Californians could lose their Medi-Cal coverage over the coming years. Under increasing financial pressures, the state has also implemented cuts to coverage for certain groups. Effective this month, Medi-Cal enrollment for undocumented individuals has been frozen, as federal funds cannot be utilized for this demographic except in emergencies. Furthermore, non-emergency dental care for undocumented adults already enrolled in Medi-Cal will be cut this summer.
The coalition’s efforts reflect a critical response to a challenging landscape for healthcare access in Los Angeles and beyond, aiming to safeguard vital services for the most vulnerable populations.
