Santa Clara County Places 0.625% Sales Tax Increase on November Ballot to Offset Federal Healthcare Cuts

Santa Clara County supervisors unanimously voted to place a five-eighths cent sales tax increase on the November ballot to address a projected billion-dollar budget shortfall caused by federal Medicaid and Medicare cuts under President Trump's HR 1 legislation. The proposed tax hike would raise the countywide sales tax from 9.125% to 9.75%, with some cities like San Jose and Campbell potentially reaching rates above 10%, and is expected to generate around $330 million annually to support the county's public healthcare system, which includes four hospitals and 15 clinics. Despite these efforts, the additional revenue will only partially fill the estimated $1.3 to $1.4 billion loss in federal funding by 2030, forcing the county to also consider spending cuts to maintain critical health services. County officials emphasized that the federal cuts, described as "self-inflicted cruelty and chaos," will lead to thousands losing health insurance coverage and threaten the safety net for vulnerable populations. To ensure accountability, leaders are exploring the creation of an oversight committee to monitor the use of the new tax funds. The sales tax increase is viewed as a necessary but difficult response to protect vital healthcare services amid sweeping reductions in federal social safety net programs.