California Democratic Gov. Gavin Newsom is facing another blow after a massive wealth tax he warned could cause a wealth and business exodus from the state was officially added to the November ballot.

Despite his opposition, the measure’s sponsor, Billionaire Tax Now, announced Thursday that it was officially being added to the state’s ballot. The measure, called the California Billionaire Tax Act, would impose a one-time, «emergency» 5% tax on Californians with assets exceeding $1 billion. The tax has been endorsed by socialist Sen. Bernie Sanders, I-Vt., who called it «reasonable and necessary» «at a time of unprecedented and growing wealth consolidation and income inequality.»

However, Newsom, a rumored frontrunner for the Democratic Party’s presidential nomination, has come out strongly against the tax, citing fears that billionaires will simply up and leave to states like Texas or Florida.

In a lengthy Substack post on the tax, Newsom wrote, «Last night, it became certain that a wealth tax would be placed on the November ballot in California. I’m voting no.»

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«You may not be able to pick up and move to Texas or Florida to shelter your income from taxation, but I promise you that billionaires can, and do,» he wrote, adding, «Wealth is movable, and it shops for the state with the lowest taxes.»

In a state that has already lost prominent business figures such as Elon Musk, Google co-founder Larry Page and Oracle founder Larry Ellison, Newsom is not the only one warning that the billionaire tax could worsen California’s ongoing exodus.

Earlier this year, Silicon Valley tech entrepreneur Allison Huynh predicted in an interview with Fox News Digital that the tax would cause a «mass migration,» starting with «not just the billionaires, but the people who are investing in new ideas, in new infrastructure, whether it’s AI, healthcare, tech, robotics.»

Huynh likened the proposed tax hike to a restaurant about to go out of business.

«Instead of lowering the price, they increase the price,» she said. «And then you go into the restaurant, and it’s like $50 for a bowl of really bad dumplings.»

Fox News Digital reached out to Billionaire Tax Now for comment.

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Sen. Bernie Sanders, I-Vt., endorsed the California billionaire tax. (Sarah Rice/Getty Images)

After news of the measure being added to the ballot broke, Newsom called on the U.S. to institute a national billionaire tax and what he referred to as «a new social contract.»

In an X post, Newsom wrote that «the system is fundamentally broken. The federal tax code, a corporate code, and an inheritance code were written for a different set of Americans. It’s time for an economic reset.»

In his Substack post, he argued «the fight to make the wealthiest Americans pay more in taxes is not one we should be fighting state by state.» Instead, he wrote, «The fight belongs at the federal level, where this broken system was created in the first place.»

In January, Newsom said he felt vindicated in opposing the proposed wealth tax after reports showed some of California’s wealthiest residents moving money and businesses out of the state, warning the measure would damage the economy and drive away investment.

«This is my fear,» Newsom said in a Politico interview on Monday. «It’s just what I warned against. It’s happening.»

«The evidence is in. The impacts are very real — not just substantive economic impacts in terms of the revenue, but start-ups, the indirect impacts of … people questioning long-term commitments, medium-term commitments,» he continued. «That’s not what we need right now, at a time of so much uncertainty. Quite the contrary.»

Despite Newsom’s opposition, the group behind the tax effort — Billionaire Tax Now, sponsored by the Service Employees International Union – United Healthcare Workers West — proceeded to add it to the ballot.

The union posits that the tax will «prevent the collapse of California healthcare and help fund California public K-14 education and state food assistance programs.»

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California Gov. Gavin Newsom delivers his final state budget plan at the Capitol Annex Swing Space in Sacramento on May 14, 2026. (Gabrielle Lurie/San Francisco Chronicle via Getty Images)

Billionaire Tax Now is confident the measure will pass, posting on X that «while a few controversial billionaires and their buddies in Sacramento want to see California’s hospitals close and tax breaks for billionaires protected – popular support is on our side.»

Meanwhile, some of Newsom’s detractors claim that his opposition to the measure is driven by a desire to appeal to potential presidential donors.

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Billionaire Tax Now reposted an X post by David Sirota, founder of the progressive investigative news outlet The Lever, in which he asserted that «Gavin Newsom is trying to protect 250 prospective 2028 presidential donors, even if that means 3 million of his constituents are medically bankrupted.»

Reached for comment, Newsom’s office directed Fox News Digital to his Substack and video. 

As the brutal war between the two nations continues to rage, Ukraine conducted a significant nighttime assault against a dozen Russian regions, Russian-held Crimea as well as the surrounding seas, Russia’s Ministry of Defense indicated on Friday, according to The Associated Press, which reported that the effort appeared to be one Ukraine’s largest drone attacks since Russia’s full-scale invasion several years ago.

The ministry reported that the country’s air defenses intercepted a whopping 660 Ukrainian drones, according to the outlet, which noted that the prior largest Ukrainian assault during the past year included 556 drones last month on May 17.

Moscow Mayor Sergei Sobyanin indicated that 47 Ukrainian drones were taken out as they headed for the capital city, according to the report.

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The AP reported that Ukraine’s air force indicated that the nation’s defenses stopped 174 of 189 Russian drones overnight, though four out of seven Iskander-M ballistic missiles breached air defenses and hit various places.

But even as the years-long war between the two countries drags on, the bitter enemies engaged in a prisoner swap, according to the AP, which reported that officials said 160 individuals from each side were going home on Friday.

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In this pool photograph distributed by the Russian state agency Sputnik, Russia’s President Vladimir Putin chairs a Security Council meeting via videolink in Moscow on June 25, 2026. (Pavel Byrkin / POOL / AFP via Getty Images)

Ukrainian President Volodymyr Zelenskyy noted in a Friday post on X, «We continue bringing Ukrainians home from Russian captivity. Today, 160 servicemembers were released from captivity. All of them had been held captive since 2022.»

«Among those released today are servicemembers of the Armed Forces of Ukraine, the State Special Transport Service, National Guard warriors, and border guards. They defended Ukraine in Mariupol and at Azovstal, as well as in the Donetsk, Luhansk, Kharkiv, Zaporizhzhia, Kyiv, Chernihiv, and Sumy sectors,» he continued.

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Trucks are engulfed by smoke from a fire at a parking lot in Zaporizhzhia, Ukraine, on June 25, 2026. (Dmytro Smolienko/Ukrinform/NurPhoto via Getty Images)

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«I thank our entire team, which works every day to bring our people back. Special gratitude to all our units on the frontline who replenish Ukraine’s ‘exchange fund’ and, through their courage, make it possible for us to bring people home. We remember everyone who remains in captivity. We are checking every name. We must bring everyone back – both military personnel and civilians,» Zelenskyy added.

The Associated Press contributed to this report

Americans gathered on the National Mall for President Donald Trump’s America250 kickoff at the Great American State Fair said New York’s socialist surge is a warning sign for Democrats — one they argue history has already rejected.

«If you study history, you will see that many countries have already tried to go down that path and ended up in disaster,» said 11th grade Georgia teacher Jill. «If you talk to immigrants who came from countries that were socialist, they will tell you they left you know tending toward communist countries. They left for that reason.»

Fox News Digital spoke with Americans who gathered on the National Mall Wednesday evening for Trump’s rally kicking off the Great American State Fair celebrating the nation’s 250th anniversary, where attendees shared why they believe socialism would fail in the United States.

The comments follow New York City socialist Mayor Zohran Mamdani scoring another political victory Tuesday, with all three congressional candidates he endorsed—Brad Lander, Claire Valdez and Darializa Avila Chevalier—winning their respective Democratic primaries.

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The victories were widely viewed as another sign of Mamdani’s growing influence in the Democrat Party and the increasing acceptance of socialism. 

The socialist victories in several high-profile New York Democratic primaries drew a sharp political contrast that many attendees of Trump’s rally told Fox News Digital served as a stark reminder of the direction they fear the country is heading.

Rally attendee Jill told Fox News Digital that she traveled to East Germany at the age of 16 when the Berlin Wall was coming down, an experience she now brings into the classroom by showing her students photos from the trip.

«I show my students pictures, and we talk about what communism means … capitalism is what’s got us here. We’ve been a capitalist country for a very long time. They have to be extremely careful when voting. They need to study and be well-informed voters,» Jill continued.

While socialism collapsed in the Soviet Union and East Germany, it continues to shape the governments of countries such as Cuba and Venezuela—two nations that President Donald Trump has made a focus of his foreign policy efforts in an effort to support democratic change.

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Trump supporters speak to Fox News Digital at Great American State Fair rally. (Hannah Brennan/Fox News Digital)

«I don’t support socialism … If you look at Cuba, the difference there… compared to even the other Caribbean countries around it, it’s totally different. And they’re driving old cars. They don’t have even heating and air … capitalism makes that possible. And so I’m very much in favor of working for what you want … I still think America is a place where the American dream can still come true,» said Toni of Kentucky.

«A hundred million people died from communism, whether it be from China and Mao or Stalin and Russia, Hitler. We can’t forget our history, or we have a tendency to repeat it, and we should definitely reject this. It’s never worked anywhere. And capitalism and a free market society has benefited the world,» David of Annapolis, Maryland, said.

Jennifer, who traveled from Tennessee, said she is worried about the rise of socialism in America. 

«It’s not something that’s beneficial for our country and our values,» she said.

Former Rochester, New York, resident Norma told Fox News Digital she has 10 grandchildren and is worried about the next generation.

«New York is pretty much, I hate to say, far gone… I lived there for 22 years. There are conservative people there, but unfortunately, there’s this new agenda coming through,» she said.

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A father and son traveled from New York. (Ashley DiMella/Fox News Digital)

Mamdani has faced criticism from conservatives over proposals including fare-free city buses, universal free childcare and city-run grocery stores, with Americans at the event telling Fox News Digital that «free» programs ultimately come at taxpayers’ expense.

«Socialism promises everything, but they can’t deliver past everybody’s money… history has shown where socialism fails… the proof is in the pudding,» said Billy of North Carolina.

«I don’t agree with it at all… we can’t function on giving everything away for free,» said Nicky of Tennessee.

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People watch as U.S. President Donald Trump speaks during a rally to kick off the Great American State Fair on the National Mall on June 24, 2026 in Washington, DC. (Tasos Katopodis/Getty Images)

When Fox News Digital asked Gen Z and Millennial voters whether Mamdani is «cool,» Sarah of Massachusetts and Johanna and Elizabeth of California responded, «no.»

«I understand the appeal that socialism has, but definitely don’t think that it’s the right way our country should be going. I think in theory it makes sense,» said Sarah. «In reality, that’s not how it ends up looking. It’s definitely scary to see so many of my generation leaning that way.»

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«It’s a really good concept to have everything for free in socialism, but it doesn’t really work out in the real world,» added Johanna. «If you look at the countries that have already tried socialism, it really hasn’t worked. It also doesn’t encourage innovation.»

Elizabeth, visiting Washington, D.C. for the week, said she agreed with her friends, adding, «I’m not a socialist. I’m a Republican.»