Governor Newsom Signs Historic Fair Share Contribution Bill, Setting California on a Path to Hold Corporations Accountable

California Takes Critical Step Toward Making Corporations Pay Their Fair Share as They Cash In on Federal Tax Breaks Funded by Stripping Workers and Families of Coverage

SACRAMENTO, CA – Last week, Governor Gavin Newsom signed SB 177, taking the first concrete step toward requiring the largest corporations in California to pay their fair share when they shift health care costs for their workers onto Medi-Cal. The bill mandates the state must develop a plan for that contribution in the coming months — a major step in the Fight for Our Health coalition’s push to hold corporations accountable, led by SEIU California, Health Access California, the California Pan-Ethnic Health Network, and Disability Voices United.

The signing comes as President Trump’s H.R. 1 threatens to strip health coverage from 2 million Californians through new work requirements, more frequent eligibility checks, and deep cuts to Medi-Cal funding. A UC Berkeley Labor Center study found that 3.6 million California workers already rely on Medi-Cal at a projected cost of $36 billion in state and federal dollars — because it’s too easy for large corporations to exploit the taxpayer funded Medi-Cal system rather than provide affordable coverage for the workers they depend on. And Californians support holding these corporations accountable – a recent statewide poll found 76% of California voters support requiring large corporations to contribute to Medi-Cal by a 4-to-1 margin.

With SB 177 signed into law, California is moving forward on a plan to hold corporations accountable for the costs they push onto the public, rather than leaving working families and taxpayers to foot the bill alone.

“Governor Newsom’s signature on SB 177 is a strong declaration that California won’t stand idly by while Trump shreds our safety net and pushes millions of working families out of their access to health care,” said Arnulfo De La Cruz, President of SEIU California and SEIU Local 2015. “Securing critical pieces of a Fair Share contribution in law this year is a testament to our growing movement to unrig California and the SEIU members and community allies who organized and mobilized to create this pathway.”

“Governor Newsom and the Legislature listened when Californians said corporations should pay their fair share to keep our health care system strong, and today they put that plan into motion,” said Rachel Linn Gish, Interim Deputy Director for Health Access California. “Even as Washington abandons its responsibility to our health care, California is proving it will keep fighting to protect it.”

“This is a significant  step towards the California future we’re fighting for — one where corporations can’t grow richer while our communities get sicker,” said Kiran Savage-Sangwan, Executive Director of the California Pan-Ethnic Health Network. “Our work isn’t finished — we’ll be watching closely to make sure this promise becomes real, lasting accountability for corporations. But today is proof that it’s possible, even when Washington refuses to lead.”

The Fight for Our Health coalition thanked Governor Newsom and legislative leaders for their partnership in getting SB 177 signed, and pledged to keep working with them to ensure big corporations are held accountable and every Californian can access the care they need.

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