# LA County Escrows Measure ER Revenue

Los Angeles County’s Measure ER half-cent sales tax is scheduled to take effect October 1, 2026, but a legal challenge requires the revenue to remain in escrow until the case is resolved. The measure is projected to generate about $1 billion annually for five years, with planned support for healthcare providers and county services. For providers and contractors planning around county-funded work, the pending case delays access to that funding and creates uncertainty about the timing of county spending plans.

- Healthcare providers and businesses expecting Measure ER-funded work should account for delayed funding and evaluate alternative funding sources, as the signal recommends.
- The County says it will finalize spending plans so funds can reach public and private healthcare providers as soon as legally possible; no specific procurement, contract value, or solicitation is announced.
- The projected revenue is substantial, but its availability depends on resolution of the legal challenge, making timing a key consideration for organizations planning county service capacity.

**Jurisdictions:** sled
**Industries:** Healthcare
**Topics:** Grants & Funding
**Published:** September 30, 2026

### Government Entities
- County of Los Angeles (LA County)
- LA Health Services
- Los Angeles County Department of Public Health
- Los Angeles County Department of Public Social Services (DPSS)

### Key Quotes
> 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.
> — Christina Ghaly, Director, LA Health Services

> 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.
> — Joseph M. Nicchitta, Chief Executive Officer, County of Los Angeles

### Sources
- [Meritless Legal Challenge Freezes Spending of Measure ER Taxes – COUNTY OF LOS ANGELES](https://lacounty.gov/2026/09/30/meritless-legal-challenge-freezes-spending-of-measure-er-taxes/) - CA