The union championing the initiative argues it’s necessary to offset the deep cuts imposed by President Donald Trump’s signature tax bill, warning California will suffer massive job losses and hospital closures without an infusion of extra cash. Progressives have for years pushed a wealth tax as a way to iron out soaring economic inequality.

On Nov. 17, Trump said the dividend checks would go to “individuals of moderate income” sometime before the 2026 midterms. He emphasized that tariff revenue makes the idea possible and that the administration also intends to pay down part of the national debt.