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LA County considers sales tax increase to deal with federal funding cut
A proposal from Los Angeles County Supervisor Holly Mitchell is meant to make up for some federal funding cuts, most of which were to the county's healthcare system.
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Samanta Helou Hernandez
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LAist
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LA County considers sales tax increase to deal with federal funding cut
The Los Angeles County Board of Supervisors on Tuesday will consider a proposal to place a plan on the ballot that, if passed, would raise the sales tax by half a cent to address federal funding cuts. The increase would bump the county’s sales tax to 10.25% — the highest allowed by state law.
Topline:
The Los Angeles County Board of Supervisors on Tuesday will consider a proposal to place a plan on the ballot that, if passed, would raise the sales tax by half a cent to address federal funding cuts. The increase would bump the county’s sales tax to 10.25% — the highest allowed by state law.
The backstory: L.A. County faces projected losses of $2.4 billion over the next three years as a result of President Donald Trump’s “One Big Beautiful Bill,” most of it to the county’s healthcare system. In just four months following the bill’s signing, the county lost an average of 1,000 people per day from Medi-Cal enrollment — over 120,000 people between July and November 2025, according to Supervisor Holly Mitchell.
Children hit hard: During the same four-month period, more than 27,000 children under age 18 lost their Medi-Cal coverage, equating to nearly 200 children per day, according to Mitchell. The county also lost more than 70,000 CalFresh enrollees receiving food assistance, including approximately 27,000 who were children under age 18.
Temporary tax: Under Mitchell’s proposal, which must be approved by voters, the sales tax would raise $1 billion a year and expire in five years. Mitchell is proposing to place the measure on the June ballot.
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