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Proposition 44: Require more clinic spending on patient care

This explainer was originally published by our news partners CalMatters. Be prepared for California’s primary: Sign up for CalMatters' free election newsletter and be the first to know when they update the CalMatters 2026 Voter Guide with information on key races.

What does California Proposition 44 do?

Proposition 44 would require community clinics that serve low-income patients to spend 90% of their annual revenue on patient care. The measure directs the attorney general to publish guidance on what spending qualifies and allows the state to fine clinics that don’t spend the full 90%. The labor union SEIU-UHW pushed a similar bill last year, but it failed. Clinics failed to keep the measure off the ballot with a lawsuit earlier this year.

California’s 2026 midterm elections will be held on Tuesday, Nov. 3, 2026. Get general information about the election, news coverage, an interactive ballot guide and results on election day.

What do supporters and opponents say?

Supporters

Supporters, led by the health workers union SEIU-UHW, argue that clinics should spend more on direct patient care and less on executive pay and overhead. With federal cuts under H.R. 1 — which is expected to leave many more uninsured — looming, supporters say it is especially critical for clinics to prioritize patient care now.

Opponents

Opponents say the measure is unnecessary because community clinics are already heavily regulated by the state and federal governments. They say it would cost clinics more than $1.7 billion in noncompliance fees in the first year, ultimately forcing clinics to significantly reduce services or close.

Ballot text

This is how the proposition will appear on the ballot.

REQUIRES COMMUNITY HEALTH CLINICS SPEND 90% OF REVENUE ON PROGRAM SERVICES. INITIATIVE STATUTE. Imposes penalties on nonprofit Federally Qualified Health Centers (community clinics providing primary care to medically underserved areas and populations) that spend less than 90% of revenue on “program services” advancing their charitable purpose, including but not limited to patient services. Fiscal Impact: Increased state costs in the low tens of millions of dollars per year, covered by fees.

Source: California Secretary of State

Campaign finance

California’s 2026 midterm elections will be held on Tuesday, Nov. 3, 2026. Get general information about the election, news coverage, an interactive ballot guide and results on election day.

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