Silicon Valley Dumps Ro Khanna: Tech Titans Rally Behind Ethan Agarwal in Wealth Tax Backlash Primary

Silicon Valley's elite, once ardent supporters of Representative Ro Khanna, are now funding challenger Ethan Agarwal in California's 17th congressional district primary.

Khanna, who rose to power with backing from tech luminaries like Marc Andreessen and Sheryl Sandberg in 2014, has sparked outrage with his endorsement of a one-time wealth tax on billionaires.

Silicon Valley's Dramatic Political Reversal

The shift intensified after Khanna co-sponsored national legislation with Bernie Sanders for a 5% annual wealth tax, projected to raise trillions over a decade.

Ethan Agarwal, a 40-year-old entrepreneur who sold fitness app Aaptiv and co-founded baby care brand Coterie, announced his bid against Khanna in early March 2026.

Backed by Y Combinator CEO Garry Tan and DoorDash co-founder Stanley Tang, Agarwal's campaign is poised to be one of the most expensive primaries of the 2026 cycle.

Agarwal criticizes Khanna's national ambitions, arguing the district—home to 5,000 children in poverty despite its wealth—needs a local champion.

Historically, Silicon Valley propelled Khanna to victory in 2016 after a 2014 loss, viewing him as their anti-establishment ally.

The feud underscores growing tensions over wealth taxes, congressional stock trading, and AI national security policies.

Agarwal proposes banning congressional stock trades, corporate PAC money, and imposing term limits, contrasting Khanna's progressive tax push.

This race could reshape tech's influence in California politics, signaling a fracture between founders and left-leaning Democrats.

Looking ahead, a Khanna defeat might derail his 2028 presidential aspirations, while Agarwal's win could embolden anti-tax tech voices nationally.

The 2026 primary highlights Silicon Valley's evolving priorities amid economic pressures and policy battles.