California Considers Billionaire Tax Amidst Looming Federal Food Benefit Cuts

San Francisco, United States – As federal food benefit cuts loom, Californians are exploring a controversial “billionaire tax” to mitigate the financial impact on vulnerable residents. The proposed tax aims to address funding gaps created by recent federal legislation, particularly affecting programs like the Supplemental Nutritional Assistance Program (SNAP).

The Struggle for Food Security

For individuals like Greer Dove, a single mother balancing studies, work, and caring for her eight-year-old daughter with special needs, federal food benefits and local food banks are a lifeline. “We need this so we can keep functioning at a high level,” Dove states, emphasizing the critical role these benefits play in her family’s stability. She relies on weekly visits to a Marin County food bank for fresh produce, supplementing her federal assistance.

Dove, who has a diverse work history but has been on SNAP for six years, recalls a time before benefits when she would skip meals to ensure her daughter ate. Her story highlights the profound impact of food assistance on families struggling with economic precarity.

Federal Cuts and Their Consequences

The One Big Beautiful Bill Act (OBBBA), enacted in June, is set to slash SNAP benefits by over $186 billion nationwide over the next decade. This legislation, intended to offset income tax cuts, could result in more than 3 million Americans, including an estimated 665,000 Californians, losing crucial food assistance.

Andrew Cheyne, managing director of government relations at the County Welfare Directors Association of California, warns that these cuts collectively “present an existential threat to food benefits.”

California’s Billionaire Tax Proposal

In response, California is considering a one-time 5 percent tax on the assets of its more than 200 billionaires. This measure, which garnered over 1.5 million signatures in April, is likely to appear on the November midterm election ballot. While the majority of the projected $100 billion revenue would address health insurance gaps created by OBBBA, 10 percent is earmarked to offset reductions in food benefits.

California, home to over 5.3 million food benefit recipients—more than any other state—has already begun to feel the effects. In April, 72,000 immigrants lost benefits, and from June onwards, nearly 600,000 recipients face work eligibility screenings. This means many, including the homeless, seniors, foster youth, and veterans, will need to work, study, or volunteer to maintain their benefits.

Brian Galle, a law professor at UC Berkeley and one of the tax measure’s authors, points out the irony in California, the birthplace of gig work, where “jobs are increasingly precarious… But nutrition needs are steady.”

Making Impossible Choices

At the La Ofrenda food bank in San Francisco, new members continue to seek assistance. Gladys Lee, who traveled 45 minutes by train, found her way there after a back injury ended her three-decade career as a hotel room cleaner. After years of struggling, food had become scarce.

Nationally, SNAP rolls have shrunk significantly since OBBBA’s enactment in July 2025, with over 3.3 million fewer recipients by January 2026. In California, Calfresh (the state’s food benefit program) saw a 6 percent reduction, or 288,000 people, even before the OBBBA cuts fully took effect.

Agriculture Secretary Brooke Rollins attributes this decline to a robust economy and job growth, suggesting a transition “from welfare to work.” However, Bureau of Labor Statistics data shows stable unemployment rates, contradicting the notion that shrinking rolls are solely due to an ebullient job market.

Dottie Rosenbaum, director of Federal SNAP Policy at the Center for Budget and Policy Priorities, notes, “This last time we saw such a steep, quick decline, other than during natural disasters, is three decades ago when welfare reform was enacted.”

Roberto Alfaro, executive director of the nonprofit Homey, which runs La Ofrenda, observes people working multiple jobs yet still relying on food banks after paying rent. Keely O’Brien, a policy advocate, summarizes the situation: “People are making impossible choices.”

California’s status as the world’s fourth-largest economy contrasts sharply with its soaring cost-of-living crisis. O’Brien highlights that “few households can dedicate that much of their income towards food” given rising housing and utility costs.

Opposition and the Road Ahead

The proposed billionaire tax faces considerable opposition, particularly from tech entrepreneurs who argue it could lead to capital flight and stifle innovation. Sergey Brin, Google co-founder, has actively funded efforts to undercut the tax, likening it to an “economic 9/11” and citing his family’s flight from socialism. He has backed two counter-measures, also slated for the November ballot, which aim to prohibit future taxes on personal property and invalidate the billionaire tax.

However, supporters, including a coalition of unions, are preparing for a tough fight. Kris Cuaresma-Primm, director of partnerships for the coalition, emphasizes the need to communicate “that there is a tidal wave of pain coming from the cuts, and we want to reclaim the losses from the OBBBA.”

Giulia Varaschin, a senior tax policy adviser, suggests academic evidence for significant wealth flight due to such taxes is minimal. She notes that previous wealth taxes failed to meet revenue expectations often because they targeted a broader base, not just the ultra-rich, and didn’t adequately tax assets where much of the wealth lies—issues the California proposal aims to rectify.

Even if passed, enforcement remains a concern. Daniel Shaviro, a taxation professor, points out that governors might deprioritize enforcement, citing Governor Gavin Newsom’s opposition to the tax. However, Primm believes Newsom is “out of touch with Californians on this.”

As the November election approaches, the fate of both food benefits and the billionaire tax hangs in the balance, leaving individuals like Greer Dove with growing anxiety. “The anxiety of it all is adding up. I could be next,” she worries.