A meritless lawsuit filed to invalidate Los Angeles County’s Measure ER sales tax will strip the County’s most vulnerable patients of life-saving care and do irreparable damage to the regional healthcare system. LA County stands ready to fight back and defend the will of the voters by protecting the ½-cent Measure ER sales tax approved in June.

The lawsuit, brought by the Libertarian Party of LA County, will prohibit the distribution of sales tax revenue collected under this measure to hospitals, clinics, and County health departments who provide the County’s most vulnerable residents with life-saving access to healthcare. The sales tax will go into effect in unincorporated areas and incorporated cities on October 1, but by law the County will be unable to spend the funds until the lawsuit is resolved.

“For patients and families across LA County, Measure ER is a desperately needed lifeline. People do not stop needing care because funding disappears. They still need cancer treatment, diabetes and high blood pressure medications, prenatal care, immunizations, and a doctor when they are sick,” said Dr. Christina Ghaly, Director, LA Health Services. “The public spoke through their vote about the importance of healthcare for themselves, their families, friends, and neighbors. Now, while this legal challenge is pending, the funding voters approved cannot reach the healthcare providers it was intended to support.”

Measure ER is a general sales tax intended to raise money for healthcare, public health, and other human services that are under financial pressure based on reductions in State and federal funding and Medi-Cal eligibility changes under H.R. 1. The tax is projected to raise approximately $1 billion per year for five years, at which point it will expire.

The Los Angeles County Board of Supervisors adopted an initial spending plan, subject to the County’s budget process, that would allocate 45% of the taxes collected to support a program providing healthcare to low-income, uninsured LA County residents through nonprofit clinics and other outpatient healthcare providers.

LA Health Services, the County’s integrated healthcare system, is expected to lose over $700 million in federal and State revenues by 2028 and was set to receive 22% of Measure ER funding under the spending plan. If the Measure ER lawsuit is not resolved in the County’s favor, public and private hospitals and clinics counting on Measure ER money will need to find other funding or may be forced to cut services or even close facilities.

“Measure ER was approved by voters at a time when Los Angeles County is facing significant cuts in federal funding that threaten the programs and services our communities rely on to stay healthy,” said Barbara Ferrer, PhD, MPH, MEd, Director of the Los Angeles County Department of Public Health. “Measure ER funds are intended to help fill the enormous gaps left by those cuts and protect critical public health services, particularly in communities that have historically had fewer resources and face the greatest barriers to health. Delaying this funding means severely limiting our ability to respond to communicable disease threats, monitor and mitigate environmental hazards, and provide public health services during emergencies. At a time of unprecedented funding challenges, we need to be investing in communities, advancing equity, and protecting the services that help every resident have the resources needed to be healthy.”

This lawsuit does not change residents’ access to Medi-Cal or CalFresh benefits. Eligibility changes to Medi-Cal and CalFresh come from H.R. 1, the federal law passed in July 2025, not from this case. The lawsuit only affects whether Measure ER funding reaches local healthcare providers and County departments, including the Department of Public Social Services, which connects residents with benefits and essential resources.

“Families across Los Angeles County depend on the County’s network of available services to help them stay healthy, put food on the table, and meet other needs during difficult times. When resources for one part of that network are disrupted, the effects can ripple across other supports families rely on. DPSS remains committed to helping our communities navigate changes, understand their options, and connect to the benefits and services available to them,” said Dr. Jackie Contreras, Director of the Los Angeles County Department of Public Social Services.

The plaintiffs are challenging the constitutionality of Assembly Bill 1768, a State law enacted by the Legislature and signed by the Governor, which allowed LA County to exceed the otherwise applicable sales tax limit. Similar challenges have repeatedly been rejected by courts throughout the State.

“By delaying the release of funding, this lawsuit wreaks havoc on a system that low-income, uninsured patients rely on and that more than 1 million County voters endorsed,” said Chief Executive Officer Joseph M. Nicchitta. “The County will continue moving forward and will finalize its spending plans to ensure these critical funds reach private and public healthcare providers as soon as legally possible.”

While the courts decide the matter, which could take two years or more, State law requires the tax revenue to be placed in an escrow account, where it must remain unspent. Unless the lawsuit is withdrawn, residents will continue to pay the tax, but no services will be funded with the newly generated revenue until the lawsuit is resolved.

“The County is confident in the validity of the Measure ER tax and has followed the law in every step of working with the State and presenting the measure to voters,” said County Counsel Dawyn R. Harrison. “Opponents were free to campaign against the tax, but this lawsuit is now seeking to subvert the will of the voters.”

The new sales tax will take effect on all taxable transactions throughout LA County, in both unincorporated areas and cities, on October 1, despite the legal challenge. If the tax is ruled invalid based on the legal challenge, the State will administer refunds.

Residents can check their local sales tax rate by visiting the California Department of Tax and Fee Administration at cdtfa.ca.gov.

More information about Measure ER can be found HERE.