Why Congressman Vince Fong is urging the Trump administration to reject a health tax in California

August 2, 2026 - 17:15

Congressman Vince Fong is speaking out against Governor Gavin Newsom's latest proposal to reshape California's Managed Care Organization tax, calling on the Trump administration to step in and reject the plan. Fong argues that the changes would divert funds away from their intended purpose and deepen the state's ongoing affordability problems.

The MCO tax, which is levied on health plans that serve Medi-Cal patients, has been a recurring point of contention in Sacramento. Newsom's administration has pitched the adjustment as a way to stabilize health care funding and close budget gaps. But Fong sees it differently. He says the proposal is a misuse of resources that would ultimately hit families and small businesses through higher costs and reduced services.

In a letter addressed to federal officials, Fong urged the administration to block the plan, warning that it could set a dangerous precedent. He emphasized that California already struggles with some of the highest living expenses in the nation, and adding another layer of financial pressure on the health care system would only make things worse.

Fong, who represents a district in the Central Valley, has been a vocal critic of state spending and tax policies he views as out of step with working families. He argues that instead of finding new ways to tax, the state should focus on cutting waste and improving efficiency in existing programs.

The congressman's push comes at a time when health care costs remain a top concern for voters across the state. Whether the Trump administration will act on his request is still unclear, but Fong is making it clear that he intends to keep the pressure on.