Proposition 44
Requires Community Health Clinics Spend 90% of Revenue on Program Services
On the ballot
California · November 2026 general election · Citizen initiative · Election day November 3, 2026
Topics: Health care
In plain language
Proposition 44 would require nonprofit Federally Qualified Health Centers — community clinics serving medically underserved areas — to spend at least 90 percent of their revenue on "program services" that advance their charitable purpose, including patient services, and would impose monetary penalties on those that spend less. The Department of Public Health could waive the requirement in exceptional circumstances, and penalties could be refunded if a center becomes compliant within five years. The Attorney General could publish guidance defining qualifying expenditures. Filing false reports or artificially inflating the spending ratio could bring criminal charges. Affected clinics currently report spending about 80 percent on average.
Fiscal impact
Legislative Analyst's Office summary of the estimate of net state and local government fiscal impact: "Increased state costs in the low tens of millions of dollars per year to enforce the new requirements on certain private nonprofit health care clinics, covered by fees charged to the affected clinics."
Summarized from the official fiscal analysis listed in the sources below. Figures are the state's, not this site's.
What supporters and opponents say
These are summaries of arguments made by the named organizations, drawn from the sources listed below. They are their claims, not this site's, and this site takes no position on the measure.
What supporters say
- The ballot argument signed by initiative proponent Shawna Brown and community clinic worker Brisa J. Barrera says some clinic executives divert millions to inflated salaries and other non-essentials, and that the measure would direct at least 90 percent of revenue to patient care.
- Supporters state in the official argument that expected federal health care cuts make every dollar matter more, and that the requirement would help retain frontline health care workers by keeping money in the health care system.
What opponents say
- The ballot argument signed by Eric Ball (American Academy of Pediatrics, California), Katie Nilsson (California School Nurses Organization), and René Bravo (California Medical Association) says community clinics serve one in four Medi-Cal patients and are the only source of care within hundreds of miles in some rural areas, and that the measure would increase wait times and could eliminate care.
- Opponents state in the official argument that community clinics are already heavily regulated by federal and state governments, with strict funding rules and regular mandatory public audits, making the measure unnecessary.
- The argument names Planned Parenthood Affiliates of California, the California Academy of Family Physicians, the American College of Emergency Physicians of California, and the National Association of Social Workers California Chapter among opponents.
Reproduced verbatim from the state's certified ballot text.
Requires Community Health Clinics Spend 90% of Revenue on Program Services. Initiative Statute. Official title and summary prepared by the Attorney General: • 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. Department of Public Health may waive spending requirements in exceptional circumstances. • Authorizes Attorney General to publish guidance defining qualifying expenditures. • Monetary penalties may be refunded if centers become compliant within five years. • Authorizes criminal charges for false reports or artificially increasing spending ratio.
Sources
Everything on this page traces to these sources. Follow them to read the original documents.
- California Secretary of State — Qualified Statewide Ballot Measures
- California Official Voter Information Guide — Proposition 44 (title, summary, Legislative Analyst's analysis, and arguments)
- California Legislative Analyst's Office — Proposition 44 (2026): Requires Community Health Clinics Spend 90% of Revenue on Program Services
Last updated . How this page is sourced and corrected is described in the correction policy.