LA County faces sales tax increase over 'Big Beautiful Bill' cuts

Los Angeles County residents could see a temporary increase in sales tax, which is intended to combat federal healthcare cuts through the “One Big Beautiful Bill Act” signed by President Donald Trump last year.

The Los Angeles County Board of Supervisors weighed and passed a motion on Tuesday, Feb. 10, that would let voters decide on a temporary 0.5% general sales tax come June. The countywide increase in the sales tax would be for five years if voters approve it.

The sales tax is to generate approximately $1 billion annually, according to the motion by L.A. County Supervisors Holly Mitchell and Hilda Solis.

They were joined by Pasadena Mayor Victor M. Gordo, healthcare officials and other supporters of the proposal early Tuesday in Los Angeles.

“Working people and families in Los Angeles are already stretched, juggling their bills, forced to go to lines to get food, gas, groceries and childcare,” said Lillian Cabral of Service Employees International Union — a major union that serves workers including in healthcare — as she endorsed the proposal.

“For many, access to Medi-Cal, Covered California and community clinics are [a] saving grace during many challenging financial [realities],” Cabral said. “Reliable, affordable access to quality medical care is essential to healthy workforce.”

Why is L.A. County proposing a sales tax? Thank Trump, according to supervisors

Under the Trump administration, including through the “Big, Beautiful Bill,” Los Angeles County faces revenue losses totaling $2.4 billion over the next three years, according to Mitchell and Solis’ motion.

The county’s healthcare system “faces more than $1 billion in cuts,” according to the supervisors.

In the motion, Mitchell and Solis warn that without this measure, Los Angeles County “will be forced to limit critical public health services and close hospitals and clinics in communities that depend on them.”

“This temporary emergency measure is the only option that can be implemented quickly enough to prevent hospital closures and the loss of healthcare access for at least hundreds of thousands of residents,” according to the supervisors. “This proposed measure would keep the county’s healthcare system positioned to meet the demand it currently faces and prevent the potential closure of our public hospitals.”

Generally, the supervisors said that the federal funding cuts could also impact public health services like chronic disease prevention and tracking and water safety.

Los Angeles County said it has lost thousands of Medi-Cal enrollees since the signing of the “Big Beautiful Bill” into law last July, including children under 18. Medi-Cal is the state’s Medicaid healthcare program.

The “Big Beautiful Bill” shaped eligibility and enrollment for Medicaid, with changes expected to impact up to two million Medi-Cal members, the California Department of Health Care Services said in January.

The California Budget & Policy Center said in last September that California could lose $30 billion in federal funding each year due to the “Big Beautiful Bill.”

How would the sales tax increase work in Los Angeles?

Voters will need to pass the measure in June 2026. This tax will cost 50 cents for every $100 spent for an LA County resident, according to Mitchell.

It’s a general tax, which means the revenue goes into the county’s general fund, according to an official during the Los Angeles County Board of Supervisors’ meeting. That means the ultimate authority about how this funding will be spent lies with supervisors.

When would the sales tax end?

The sales tax would sunset on Oct. 1, 2031.

Paris Barraza is a reporter covering Los Angeles and Southern California for the USA TODAY Network. Reach her at [email protected].