Technology Newsletter Ro Khanna faces primary challenge, Silicon Valley backlash over wealth tax by Julia Shapero and Miranda Nazzaro - 03/11/26 6:27 PM ET by Julia Shapero and Miranda Nazzaro - 03/11/26 6:27 PM ET Share ✕ LinkedIn LinkedIn Email Email 96 {beacon} Technology Technology   The Big Story   Ro Khanna faces primary challenge, Silicon Valley backlash over wealth tax Rep. Ro Khanna (D-Calif.), once championed by Silicon Valley, is facing a primary challenge from a tech entrepreneur seeking to capitalize on the industry’s growing antipathy toward the progressive Democrat after he voiced support for a controversial California wealth tax. © Greg Nash Ethan Agarwal , who launched a brief bid for California governor last year, announced last week that he was jumping into the Democratic primary to represent the Golden State’s 17th Congressional District.   He is joining the race as Khanna’s support among wealthy Silicon Valley leaders has waned since he backed a proposed ballot initiative that would hit the state’s billionaires with a one-time 5 percent tax .   “It’s certainly going to be an uphill battle,” California Democratic strategist Steven Maviglio said of Agarwal’s bid. “Ro Khanna is a nationally recognized figure with a household name well beyond his congressional district, and he has a massive war chest. And that is a very difficult fight.”   Khanna first secured his seat in Congress in 2016 with the backing of Silicon Valley and has long been viewed as a tech-friendly Democrat.   However, Khanna has rattled the industry with his recent support of the wealth tax and dismissive comments toward several prominent tech billionaires who are planning to leave his state.   Following a report that venture capitalist Peter Thiel and Google co-founder Larry Page were making moves to depart from California in late December, Khanna wrote in a post on X, “I echo what FDR said with sarcasm of economic royalists when they threatened to leave, ‘I will miss them very much.’”   The congressman further explained his position on the proposed wealth tax in a separate post, arguing that “AI was created with our tax dollars” given the federal funding that has flowed to researchers through the California university system.   “America’s central challenge is to make sure the AI revolution works for all of us, not just tech billionaires,” Khanna wrote at the time. “So yes a billionaire tax is good for American innovation which depends on a strong and thriving American democracy.”   Supporters of the tax are still obtaining signatures to secure its place on the California ballot in November. If approved, it would implement a one-time 5 percent tax on the state’s wealthiest residents to help state health care, food assistance and education programs.   The proposal has divided California Democrats, putting Khanna at odds with Gov. Gavin Newsom , one of the leading contenders for the 2028 Democratic presidential nomination.   Check out the full report at TheHill.com .   Welcome to The Hill’s Technology newsletter , I’m Julia Shapero — tracking the latest moves from Capitol Hill to Silicon Valley.   Did someone forward you this newsletter? Subscribe here.   Essential Reads  How policy will be impacting the tech sector now and in the future:   Iran-linked hackers take credit for cyberattack on US medical equipment company Stryker (NewsNation) — An Iranian-linked hacking group has taken credit for an apparent cyberattack on U.S.-based medical equipment company Stryker, which has caused technology operations across its global offices to shut down. The attack disrupted operations for thousands of employees who were unable to access company systems, The Wall Street Journal reported. Nexstar’s WOOD reported that Iranian-linked cyber group Handala …  Full Story   Military commanders given deadline to remove Anthropic products from systems Senior Pentagon leadership and military commanders have been given a 180-day deadline to remove all of Anthropic’s AI products from their systems, with the Defense Department alleging the company’s technology poses an “unacceptable supply chain risk for use in all systems and networks.” The order was issued in a March 6 internal memo, which was first obtained by CBS News and signed by Pentagon Chief Information Officer …  Full Story   Anthropic: Pentagon put billions of dollars at stake with supply chain risk designation Lawyers for Anthropic warned a judge Tuesday that the Pentagon’s decision to label its products a supply chain risk could cost the AI firm billions of dollars in revenue. Michael Mongan, an attorney for Anthropic, said during Tuesday&rsq