OAKLAND — Gov. Gavin Newsom on July 8, 2026, signed the Fair Share from Big Corporations Act, a measure aimed at requiring the state’s largest employers to cover more of the cost of their workers’ health benefits rather than shifting those costs to Medi-Cal and state taxpayers.
Senate Bill 177 requires large companies to contribute toward employee health coverage or face new state assessments tied to the cost of care their workers receive through the public program.
Members of SEIU and Health Access joined Newsom for the signing. Sen. John Laird, D-Santa Cruz, said the law “strengthens Medi-Cal, protects taxpayers, and helps ensure that large employers contribute fairly toward the health care costs of their workforce.”
Assemblymember Mia Bonta, D-Oakland, said federal cuts to health coverage are compounding the problem, arguing some employers have used public benefits as a “business strategy” for their workforce while shifting costs onto taxpayers.
The bill follows a broader pattern from Sacramento this year of legislation aimed at corporate cost-shifting, arriving the same week Newsom signed a separate measure extending the California Competes Tax Credit to encourage business investment in the state.
State finance officials have not yet released a formal estimate of how much revenue the new corporate assessments are expected to generate for Medi-Cal, though the administration has said the goal is to offset a portion of the state’s rising costs for the program as federal Medicaid matching funds face new restrictions under last year’s federal budget law.