California candidate Steyer unveils AI job guarantee funded by tech 'token tax'

California gubernatorial candidate Tom Steyer has unveiled a proposal to guarantee jobs with benefits for workers displaced by artificial intelligence. The initiative seeks to make California the first major economy to ensure good-paying employment for those impacted by the technology, a distinct move from other candidates who focus primarily on training or lack defined funding sources. Steyer, who is the first statewide candidate to make such a specific pledge, describes the plan as a necessary transformation to prevent the state's economy from hollowing out.

The financial engine of the proposal is a proposed "token tax" levied on big tech companies. Under this mechanism, firms would be taxed a fraction of a cent for every unit of data processed for AI. Revenue generated from this levy would feed into a new Golden State Sovereign Wealth Fund. This fund is earmarked specifically for housing, healthcare, infrastructure, and the modernisation of California's energy grid, alongside expanded unemployment insurance.

To administer these protections, the plan includes the creation of a new agency called the AI Worker Protection Administration. This body would comprise union leaders, academics, and technologists tasked with adopting rules to protect workers' rights. Steyer's campaign memo states that the aim is to strengthen the state's economic foundation and create vibrant public spaces, while also investing heavily in training and apprenticeship programs across the state.

Steyer's announcement arrives as lawmakers and executives scramble to address the ramifications of widespread AI adoption. While New Jersey Senator Troy Singleton has proposed a bill requiring companies replacing workers with AI to contribute to a retraining fund, Steyer's approach differs by guaranteeing jobs rather than just funding retraining. Similarly, his Democratic primary opponent, Xavier Becerra, calls for workforce investment and transition support but has not provided a specific funding mechanism, a gap Steyer explicitly aims to fill.

The concept of a token tax is not entirely new to the policy discourse. Dario Amodei, CEO of Anthropic, has previously suggested the concept as a reasonable solution, even if it conflicts with his economic interests. OpenAI has also recently proposed a similar public wealth fund. However, Steyer's plan distinguishes itself by combining this tax with a direct job guarantee, arguing that displacement without support amounts to abandonment.

The proposal operates within a tense political environment regarding AI regulation. The White House has threatened to penalise states with what it deems "onerous" AI laws, and President Donald Trump has signed an executive order that could revoke broadband funding for states with strict regulations. Furthermore, a super PAC backed by Silicon Valley powerhouses, including OpenAI cofounder Greg Brockman, has targeted New York candidate Alex Bores for his focus on AI regulation, indicating potential industry pushback against similar measures.