Story perspectives

Newsom Signs $900 M Software Tax, $100 Premium Surcharge

7/10/2026

Summary

Story summary

Gov. Gavin Newsom approved California’s 2026 budget adding a health-care provider surcharge and a software download tax.
GOP legislators led by Assemblymember Carl DeMaio wrote to President Donald Trump’s administration urging the Centers for Medicare and Medicaid Services (CMS) to reject the health-care tax.
The health-care tax could raise premiums $100 per person or $400 per family while the software download charge could generate $900 million annually.

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Story summary

Gov. Gavin Newsom approved California’s 2026 budget adding a health-care provider surcharge and a software download tax.
GOP legislators led by Assemblymember Carl DeMaio wrote to President Donald Trump’s administration urging the Centers for Medicare and Medicaid Services (CMS) to reject the health-care tax.
The health-care tax could raise premiums $100 per person or $400 per family while the software download charge could generate $900 million annually.