By PublicCEO Editor Dominick Beaudine

The Trump administration’s “One Big Beautiful Bill Act” saw funding cuts in the billions that would affect the Los Angeles County health care system. With over 3.3 million residents who rely on Medi-Cal, projected losses totaling $2.4 billion over the next three years and the threat of inaccessible health care to many county residents, the County of Los Angeles Board of Supervisors is considering a move to implement a countywide general retail transactions and use (sales) tax measure in the June 2 Statewide Direct Primary Election.

See staff report here: https://file.lacounty.gov/SDSInter/ceo/agendas/1200519_FinalAgendaPacket01.28.2026-HMHS.pdf

The full draft ballot measure is as follows.

Shall the measure to help our community address severe federal cuts enacted by the President and Congress; reduce the loss of essential services, including healthcare for county residents; reduce the risk of closing the county’s four public hospitals and numerous clinics, and significant healthcare provider layoffs and other service cuts by enacting a 1/2¢ (0.5%) general sales tax for 5 years, generating approximately $1 billion annually, with independent audits, be adopted?

The general sales tax ordinance would impose a 1/2¢ (0.5%) general sales tax for five years, generating approximately $1 billion annually, with independent audits. Along with the sales tax, a nine-member citizens’ oversight committee would be established for further transparency and to ensure fiscal accountability for any revenues raised by the measure.

Moreover, the Board of Supervisors would be required to adopt a spending plan that outlines the allocation of revenue funds generated by the tax measure and subject to the County’s annual budgeting process:

  • Up to forty-seven percent (47%) of revenue generated shall be used by the Department of Health Services (DHS) to fund a program under which a limited network of non-profit providers shall furnish no-cost or reduced cost care to low-income residents of Los Angeles County who do not have health insurance;
  • Five percent (5%) shall be used for school-based health needs and programs as determined by the governing board of L.A. Care Health Plan;
  • Ten percent (10%) shall be allocated to the Department of Public Health to support core public health functions and the awarding of grants to support health equity;
  • Five percent (5%) shall be allocated to the Department of Public Social Services to support Medicaid outreach and enrollment activities as well as work and volunteer programs;
  • Two-and-a-half percent (2.5%) shall be allocated to support Correctional Health Services;
  • Twenty-two percent (22%) shall provide financial support to DHS to safeguard its public hospital and clinic services;
  • Five percent (5%) shall be allocated to support non-profit safety net hospitals in Los Angeles County;
  • Two-and-a-half percent (2.5%) for in-home supportive services (IHSS) for the elderly and those living with disabilities with a priority on enhancing wages and benefits for IHSS providers;
  • One percent (1%) to provide financial support to the City of Pasadena Public Health Department and the City of Long Beach Department of Health and Human Services to safeguard their public services;
  •  Unless otherwise specified, all non-County hospital funds shall be distributed in a needs-based manner that is primarily based on Medicaid Emergency Department volume.

Current polling data shows that 58% of County residents would support a temporary 0.5% cent sales tax increase to preserve health care services. The Board of Supervisors is considering a future vote on whether to add the measure to the June Statewide Primary Election ballot.

The staff report calls for County Staff to seek an increase in the sales tax cap for LA County to support the incremental half-cent tax increase. Notably, without that change, several cities will see their capacity to increase sales taxes reduced or eliminated at the available tax increment is taken by the measure.

Notably, a separate half-cent tax measure for the City of Los Angeles to fund fire services is also being discussed for the November 2026 General Election, meaning if both measures are adopted, the sales tax rate in the City of Los Angeles would increase by 1% to 10.75% (current rate is 9.75%).