This story was originally published by CalMatters. Sign up for their newsletters.
State leaders are feverishly negotiating with special interests behind a few high-profile measures ahead of a Thursday deadline to withdraw them from the November ballot. Top Democrats have already announced an agreement between Uber and the state’s trial lawyers to pull rival initiatives they had each spent tens of millions of dollars promoting.
It’s a dance that happens every election cycle: Interest groups seeking policy changes spend big on voter initiatives, using them as leverage in exchange for favorable deals from state leaders, who often prefer to reach compromises to kill controversial proposals rather than take their chances with voters.
Legislative leaders can also place measures on the ballot. By Monday, they had already agreed to an affordable housing bond. They are also expected to approve a proposal to increase the cap on deposits into the state’s rainy day fund by Thursday.
Here are the highlights:
A deal between Uber, trial lawyers
Uber and California’s trial lawyers have likely avoided an expensive battle ahead of the November election by going through the state Legislature instead of voters.
Uber had collected enough signatures for a ballot initiative that would have capped attorney contingency fees and limited how much California crash victims could recover for medical costs — and not just those injured while riding in an Uber. Attorney groups had qualified a competing initiative to increase the ride-hailing company’s liability for sexual misconduct against riders and drivers.
The company and the attorneys reached a compromise in Senate Bill 623, which would cap medical cost recoveries in cases that involve medical liens, which allow crash victims to get medical treatment without paying upfront while their case is pending. It would not restrict lawyers’ contingency fees as Uber had proposed in its ballot measure, which critics said would have made it harder for crash victims to get legal representation. It will be limited to crashes that occur in an Uber or other ride-hailing service.
The legislation would also prohibit attorneys from recommending medical providers with whom they have direct ties.
Meanwhile, Uber will have to tighten its driver background checks and renew them every year, including rejecting drivers who have been convicted of certain violent offenses or those found guilty of driving under the influence, in the past seven years.
A group of medical providers that spent money against Uber’s initiative did not return multiple requests for comment about the deal. Likewise, the Consumer Attorneys of California, which had raised about $77 million for its initiative — almost as much as the $78 million Uber had allocated for its campaign, which also declined to comment beyond a statement it had agreed on with the company.
It reads in part: “This agreement protects patients from unnecessary treatment or getting overcharged, ensures access to medical care and legal representation, and strengthens safety measures.”
Consumer advocacy group Consumer Watchdog had also opposed Uber’s ballot measure but said the deal “strikes a fair balance.”
The bill “doesn’t do harm to the average Uber rider (who has health insurance),” Jamie Court, president of the group, told CalMatters.
If lawmakers pass the bill and send it to the governor, it would take effect next year.
Affordable housing bond
A record-breaking $11.25 billion affordable housing bond appears headed to the California ballot this November.
The governor, Assembly and Senate agreed on the language of Senate Bill 417, known as the Veterans and Affordable Housing Bond Act of 2026, which would have Californians borrow $10 billion to pay for the construction, rehabilitation, acquisition and preservation of affordable housing, plus another $1.25 billion to help veterans buy homes.
If approved by voters, the bond should help more than 40,000 people buy a home, help create or preserve tens of thousands of affordable units and support high-paying construction jobs, according to the Newsom administration.
“California’s future depends on whether people can afford to put down roots, raise a family, and build a life here,” the governor said in a news release.
A recent report found nearly 40,000 planned units of affordable housing in California are ready to be built but are stuck waiting for funding.
The bond is not officially a done deal. The Legislature still needs to pass the bill by Thursday and the governor must sign it before the housing bond appears on your ballot.
What’s happening with the billionaire tax?
The state’s largest health workers union appears poised to bring its high-profile billionaire wealth tax before voters despite Newsom’s late-hour efforts to strike a deal to remove it from the ballot.
Service Employees International Union-United Healthcare Workers West has proposed a one-time 5% wealth tax on the state’s roughly 200 billionaires. If approved by voters, the tax would generate roughly $100 billion primarily for healthcare with some money reserved for schools and food programs, according to SEIU-UHW.
The union says the money is needed to backfill federal healthcare cuts that forced California to cut its Medi-Cal health insurance program for low-income residents and people with disabilities.
Newsom, who emerged as an early opponent of the tax, steadily ramped up pressure against the union over the past week, joining forces with other labor groups such as the California Teachers Association and healthcare powerhouses like Planned Parenthood and the California Medical Association, which ran digital ads against the tax. Billionaires and Silicon Valley moguls also oppose the tax, which they argue would decrease state revenue in the long term by driving wealthy Californians out of the state.
Last week, SEIU-UHW called on Newsom to accept a 2% version of the tax in lieu of the original 5%, but Newsom swiftly rejected that proposal, calling it “poorly designed.”
In a recent interview with The Lever, SEIU-UHW President Dave Regan said Newsom could “pull some rabbit out of the hat” to reach a compromise, but he had doubts. “We’re prepared to go forward, and we will be on the ballot in November.”
Rainy day fund reform
Lawmakers are expected to vote this week to send a proposed constitutional amendment to voters to increase how much money the state can save in a good financial year.
Currently, the state cannot deposit more than 10% of its general fund tax revenue into its rainy day fund. Newsom and lawmakers have considered raising that cap for years.
The proposal comes as California faces a multi-year budget deficit despite growing revenue, prompting state lawmakers and Newsom to search for long-term solutions to stabilize the state’s finances. California is heavily dependent on income tax and capital gains of its wealthy residents, making the state vulnerable to economic downturns.
