California Proposition 38: $8.4 Billion for Immunology Research

California voters will decide this November on Proposition 38, an $8.4 billion bond measure designed to fund early-stage immunology and immunotherapy research for diseases including cancer, Alzheimer’s, and heart disease. If approved, the measure would authorize state borrowing to create a steady funding stream for medical research while mandating a 20 per cent discount on resulting treatments for California residents.

San Diego Research Centers Eye Advisory Roles

San Diego is positioned to become a major beneficiary if Proposition 38 passes. The La Jolla Institute for Immunology, Salk Institute, Sanford Burnham Prebys, UC San Diego, and Scripps Research would likely sit on an advisory committee overseeing $4.2 billion of the bond revenue, representing roughly half of the total funds generated. Despite their potential financial stake in the outcome, each of the prominent institutions has declined to speak about the measure.

Licensing Deals Will Reimburse State Taxpayers

The $8.4 billion bond targets early-stage research intended to yield intellectual property for biotechnology and pharmaceutical companies. To reimburse taxpayers, between 5% and 10% of the revenue generated from all resulting licensing deals will flow back to the state’s general fund. Administrative expenses are capped at 2% of any award, though the chosen primary institute receives a separate $100 million loan for startup costs.

The California Institute of Immunology and Immunotherapy Selection

Proposition 38 does not name the primary recipient of the remaining half of the funds, instead tasking the California Department of Public Health with selecting a world-class institute affiliated with the University of California that meets specific criteria. Campaign representatives acknowledge it is very likely that the California Institute of Immunology and Immunotherapy will be chosen. Founded in 2024, the UCLA-affiliated nonprofit was established by biotech billionaires including Dr. Gary Michelson, Meyer Luskin, Michael Milken, and Sean Parker.

Campaign Financing and Voter Decision in November

Campaign finance records show that the Yes on 38 campaign has raised more than $38 million, with the vast majority coming from Michelson and Luskin. That total includes a $14 million loan from Michelson to his own nonprofit supporting the measure. Additional support comes from the California Democratic Party, the Michael J. Fox Foundation for Parkinson’s Research, the Alzheimer’s Association, and the ALS Association.

Backers argue the funding is necessary to accelerate treatments that harness the body’s immune system rather than traditional methods like chemotherapy. We urgently need sustained investment to accelerate breakthroughs and bring more life-saving treatments to patients and families, said Gina Carithers, CEO of the Prostate Cancer Foundation. Critics, however, contend that the legislation channels billions in public funds to a newly created institute that currently has no scientists or researchers.