Prop.38 has gotten endorsements from Gov. Gavin Newsom, the California Democratic Party, and the state GOP, alongside dozens of patient and research advocacy groups.  Tima Miroshnichenko/Pexels
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California Approves $8.4 Billion Prop. 38 Bond for Immunology Research

The billionaire-backed Proposition 38 will fund immunology research and disease treatments, with half the bond proceeds earmarked for the California Institute for Immunology and Immunotherapy

Author : Arushi Roy Chowdhury

A funding proposal known as Prop 38 was on the ballot for voters during the US midterm elections.

​On November 3, 2026, California voters passed Proposition 38, which will provide $8.4 billion for research on immunology and cures for diseases by funding public and non-profit health labs.

​The government will now fund research in California that aims at finding treatment and cure for diseases like cancer and Alzheimer.

​According to the Associated Press, this was passed with 54% of people voting in favour and 46% voting against it. Half of the money will go to the California Institute for Immunology and Immunotherapy.

What Is California's Proposition 38 and How Will It Fund Research? ​

According to a report by CalMatters, only the California Institute for Immunology and Immunotherapy currently meet the criteria for the funding.

​Gary K. Michelson was the institute’s primary funder, and he wrote prop 38. He was also by far the largest donor to its political campaign.

​According to the nonpartisan Legislative Analyst’s Office, the bond will cost $12 billion, including interest. This means $ 500- 600 million will need to be paid every year for around 20 years.

Although borrowing money now will cost more in the long run, the state can still fund other key areas such as public schools, student support and subsidised healthcare for consumers, plus the prison system.

Why Are Critics Questioning California's $8.4 Billion Research Bond?

The supporters of Prop 38 stated that during the Trump administration, many states are losing their federal science funding, so it will be good to have separate health-research funding just for California.

According to the reports, the Prop 38 backers believe that the bond spending would pay for itself since Prop 38 ensures that 10 per cent of the revenue generated from research would be submitted to the state’s coffers.

The backers also support the idea that cures that will be funded with Prop. 38 money must be sold at a lower price to the residents of California. The cures should be sold to California residents at 20 per cent less than the average national price.

However, the opponents of Prop. 38 do not believe that drug companies will be producing enough sales to actually offset the measure’s cost to California.

According to the reports, revenue that is generated from research funded by the bond will need to exceed $120 billion after 20 years so that California can offset its investment.

Jonathan Eisen is a UC Davis biologist who has won several million dollars in highly competitive grants from the National Institutes of Health. He shared his perspective at an October press conference organised by the anti-Prop. 38 campaign.

He said, “It is remarkably hard to do, and I don’t see any justification for the speculation that they’re going to bring in this much money to pay back the people of California.”  

People who don't support Prop. 38 objected to the measure directing half of the funds to a single institute while restricting who can access the rest. They argue that scientific research thrives best in an open, competitive environment accessible to all nonprofit and public university scientists in California.

In 2024, the institute also signed an affiliation agreement with UCLA. This means they receive 7.5% of all net revenues from drugs or research developed by their staff that make it to the market.

Prop. 38 Funding Raises Questions Over Institute's Staffing Capacity ​

Dr. Susan Bookheimer, a UCLA researcher on Alzheimer’s and autism, said during a press conference that other major sources of science funding also penalise researchers who don’t have the proper staff and equipment on hand when they apply. Bookheimer has received more than $100 million in federal research grants from the National Institutes of Health.

He said this because the California Institute of Immunology has faced backlash about staffing issues and expenditure. Concerns have been raised regarding its preparedness to receive such a large amount of research funding.

According to Calmatters, the institute only had 3 members in September 2026 instead of its original hiring target of 51 employees. However, it is expected to recruit 90 staff members, including scientists, by Summer 2027.

In 2024, the institute also signed an affiliation agreement with UCLA. This means they receive 7.5% of all net revenues from drugs or research developed by their staff that make it to the market.

Prop. 38 Supporters Outraise Opposition by Nearly $72 Million

Prop.38 has gotten endorsements from Gov. Gavin Newsom, the California Democratic Party, and the state GOP, alongside dozens of patient and research advocacy groups.

It is also backed by the union representing University of California’s Graduate students and PhD researchers because the livelihood of these candidates is dependent on research grants.

According to the reports, by November 3, the supporters of Prop.38 could raise $72 million, challenging the opposition’s $12,000.

According to a Public Policy Institute of California poll released last week, 57% of likely voters favoured Prop. 38.

Californians will also vote on another big science bond measure in March 2028. The measure, which was signed by Newsom and the Legislature this summer, would authorise $7.5 billion in bonds to fund a broader range of science-related projects, including biomedical research, wildfire prevention and water.

​(Rh/ARC)

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