Politics & Government

CA Propositions 2026: All 14 Statewide Ballot Measures Explained

The propositions include high-stakes tax initiatives, an $11 billion affordable housing bond and voter ID requirements.

While the country turns its attention to the General Election and who will win control of Congress on Nov. 3, Californians are voting on 14 statewide ballot measures that could have far-reaching consequences.

Arguably, the most hot-button ballot initiatives involve taxation. Proposition 40 is the highly discussed billionaire tax, while Propositions 41 and 42 aim to counter the measure. Proposition 3 also addresses taxes on the state's highest earners.

The fight over California's Prop. 40, dubbed the billionaire tax, has garnered massive attention and significant campaign dollars from both supporters and opponents. If passed, the labor union–sponsored initiative, which is opposed by some leading Democrats, including Gov. Gavin Newsom, would impose a one-time state tax of up to 5% on residents with assets over $1 billion, excluding real estate and certain pensions or retirement accounts.

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The added tax revenues generated from Prop. 40 would be designated to help fund health care, food assistance, and education programs across the state.

However, even if Prop. 40 receives a majority of "yes" votes, its implementation remains uncertain. Building a Better California, a PAC formed earlier this year to oppose Prop. 40, has backed two counter-initiatives — Props. 41 and 42 — that contain "conflict clauses" designed to void Prop. 40.

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Neither counter-measure is explicitly labeled as an anti-billionaire tax initiative:

  • Prop. 41 prohibits new state taxes that exclude revenues from the state spending limit approved by voters in 1979, and requires audits for new special taxes.
  • Prop. 42 prohibits new state taxes on personal property, including business interests, intellectual property, and financial assets such as retirement or investment accounts.

Both Prop. 41 and 42, however, contain provision clauses stating that conflicting voter-approved measures on the same ballot become void if Prop. 41 or Prop. 42 receives a higher "yes" vote total. So unless Prop. 40 passes with more "yes" votes than those for 41 or 42, it appears doomed.

Buried by the debate over Prop. 40 is another tax measure for voters. State income tax rates currently adjust upward for high wage-earners under a measure approved by California voters in 2012 (Prop. 30) and extended in 2016 (Prop. 55). The progressive tax brackets, which require the wealthiest residents to pay more, are set to expire in 2031. Prop. 3 would make them permanent.

According to the Legislative Analyst's Office, passing Prop. 3 would preserve $5 billion to $15 billion in annual state income tax revenue.

Prop. 3 maintains broad support among California leaders. Despite the tax implications for high earners, Building a Better California endorsed Prop. 3, stating revenues are needed "to protect funding for our schools and healthcare.

But the measure's opponents argue Prop. 3 could spur wealthy Californians to flee for lower-tax states, taking jobs and revenue with them. While California did experience a small exodus of wealthy residents following the 2012 passage of Prop. 30, the 2016 passage of Prop. 55 didn't have the same effect.

Here's a look at all the statewide propositions on the Nov. 3 ballot:

Proposition 1

Proposition 1 seeks to authorize the state to issue $11.25 billion in new bonds for affordable housing, homeownership programs and veterans’ housing assistance.

If approved, Proposition 1 would authorize $10 billion in general obligation bonds for affordable rental housing and homeownership programs. Another $1.25 billion would support a state program providing home, farm and mobile home purchase assistance to veterans. It's expected to help build about 40,000 new homes or apartments while also helping another 40,000 people become homeowners.

Read more about it: CA Proposition 1: Bonds For Housing Affordability Programs

Proposition 2

Voters will consider whether to amend the state constitution to strengthen its rainy day fund, allowing the state government to squirrel away up to 10% more savings each year for lean years.

Proposition 2 would give lawmakers greater flexibility to manage reserves and debt by changing rules governing the Budget Stabilization Account. Formally called the Save for California’s Future Act, the proposition was placed on the ballot by the legislature.

Read more about it: CA Proposition 2: Amendment To Increase The State's Rainy Day Fund

Proposition 3

Currently, state income tax rates adjust upward for high wage-earners under a measure approved by California voters in 2012 (Proposition 30) and extended in 2016 (Proposition 55). The progressive tax brackets, which require the wealthiest residents to pay more, are set to expire in 2031. Proposition 3 would make them permanent.

Read more about it: CA Proposition 3: Makes Progressive Income Tax Rates Permanent

Proposition 4

Among the slate of 14 statewide ballot measures, Proposition 4 is the only one that asks voters to consider repealing something.

The measure aims to overturn a 1988 ban on using taxpayer dollars to fund campaigns for candidates running for state and most local government offices. Proposition 4 would allow state and local governments to create public financing programs within broad restrictions.

The bill is designed to encourage candidates without deep pockets or access to monied donors to run for office. Proponents of the measure say public campaigns keep private donors from having outsized influence on elections.

Critics oppose publicly funded campaigns because they put taxpayers in the position of subsidizing political campaigns — even for candidates they don't support.

Read more about it: CA Proposition 4: Changing The Rules On Public Campaign Donations

Proposition 5

Proposition 5, a legislative constitutional amendment, would change what happens after voters remove a state official from office by recall. Instead of immediately choosing a successor during the recall election as in current practice, Californians instead would vote only on whether to remove an official from office. If the recall succeeds, then the office would generally be filled based on the same procedures for filling vacancies in other, non-recall circumstances.

Read more about it: CA Proposition 5: Constitutional Amendment Changing The State's Recall Process

Proposition 37

Proposition 37, which qualified for the ballot as an initiative statute, would authorize up to $25 billion in bonds to back a loan program to help middle-income earners enter the housing market.

Specifically, the proposed programs would provide loans of up to 17% of a home's purchase price to help buyers with the standard 20% down payment. They would have to repay the loan to private lenders as with a standard mortgage payment. The program would be open to buyers earning up to twice the area's median income.

Read more about it: CA Proposition 37: Loan Program For Middle-Income Homebuyers

Proposition 38

Proposition 38 is one of California's responses to the Trump administration's massive cuts to funding medical research, impacting studies on cancer, Alzheimer’s, cardiovascular disease and diabetes.

If it passes, it would authorize the state to issue $8.4 billion in bonds to fund immunology and immunotherapy research. The measure would require the state to give half the funds to the University of California for research and the rest to public and nonprofit medical research facilities in the state. The measure would also require research facilities that develop medication with Prop. 38 funding to offer the drugs at a 20% discount to California residents while also giving 10% of the revenue back to the state.

Read more about it: What Is Prop 38? California's $8.4B Medical Research Bond Explained

Proposition 39

Proposition 39 seeks to amend the state constitution to require government-issued identification at the polls and the last four digits of a unique government-issued identifying number on mail-in ballots. Prop. 39 would also require the state to verify current voter registration lists, regularly audit compliance with the new rules and pass laws to ensure their implementation.

Read more about it: CA Proposition 39: Voter ID Measure

Proposition 40

The fight over Proposition 40, dubbed the billionaire tax, has garnered massive attention and significant campaign dollars from both supporters and opponents. If passed, the labor union-sponsored initiative would impose a one-time state tax of up to 5% on residents with assets over $1 billion, excluding real estate and certain pensions or retirement accounts. The added tax revenues generated from Prop. 40 would be designated to help fund health care, food assistance and education programs across the state.

Read more about it:

Proposition 41

Proposition 41 prohibits new state taxes that exclude revenues from the state spending limit approved by voters in 1979, and requires audits for new special taxes.

Read more about it: CA Proposition 41: Counter To Billionaire Tax

Proposition 42

Proposition 42 prohibits new state taxes on personal property, including business interests, intellectual property, and financial assets such as retirement or investment accounts.

Read more about it: CA Proposition 42: Bars New Taxes On Personal Property; Could Blow Up Billionaire Tax

Proposition 43

Proposition 43 combined two hot topics of taxes and voting. If approved, it would amend the state constitution to make it harder to raise local special taxes.

Citizen initiatives asking voters to approve local special taxes would require a two-thirds vote instead of a simple majority to be enacted. By raising the threshold, it becomes less likely that new tax ballot measures that arrive on the ballot via signature-gathering efforts can pass. Currently, the two-thirds threshold only applies to taxes proposed by government officials. If it passes, the growth of local government tax revenues is likely to slow.

Read more about it: CA Proposition 43: Raises Threshold For Passing New Tax Ballot Measures

Proposition 44

The union-backed Proposition 44 aims to make sure federally funded community clinics spend the vast majority of funding on care-oriented services as opposed to expenses such as executive compensation.

Also known as the Clinic Funding Accountability and Transparency Act, the proposition would require certain nonprofit community clinics to spend at least 90% of their total annual revenue on program services “advancing their charitable purpose,” according to the proposition text.

The proposition would give the state attorney general the authority to issue guidance regarding what constitutes qualifying spending. If a clinic falls short of the 90% requirement, it would be penalized by its shortfall – in other words, if a clinic is required to spend $90 million of its $100 million revenue on qualifying expenses, and only spends $82 million, it would be penalized $8 million. If the clinic comes back into compliance within five years and can demonstrate that it spends at least 90% on qualifying expenses, the money will be returned. If not, the money will remain with the state and will be used for clinic worker training, recruitment and retention.

Read more about it: California Prop. 44: What To Know About Community Clinic Spending Measure

Proposition 45

Proposition 45 aims to restrict the California Environmental Quality Act by placing time limits on legal and environmental reviews for housing, transportation and water projects. Supporters of the proposition say the environmental law needs updating because it has been used to inappropriately stymie development. Opponents say the landmark law helps protect Californians from potentially harmful building projects.

A yes vote would make eligible projects subject to the new review and court-challenge procedures when applicants choose them.

A no vote would keep existing review and court-challenge procedures in place.

Read more about it: CA Proposition 45: How Environmental Review Laws Turned Into Spending War

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