By Antonio Ray Harvey
On Feb. 11, California Gov. Gavin Newsom signed Senate Bill 694 (SB) 694, also known as the “Veterans Benefit Protection Act,” into law despite pressure from civil rights organizations last week to veto it.
The legislation is designed to protect veterans from unaccredited individuals who make a profit from assisting with U.S. Department of Veterans Affairs (VA) benefit claims.’
Authored by Sen. Bob Archuleta (D–Pico Rivera), the bill strengthens the state’s commitment to those who have served in the military, the governor’s office says.
SB 694 also establishes a new $20,000 state income tax exclusion for eligible veterans and their surviving spouses.
“We owe our veteran community a debt of gratitude – for their years of service and sacrifice,” Newsom stated. “By signing this bill into law, we are ensuring veterans and service members get to keep more money in their pockets and not line the coffers of predatory actors. We are closing this federal fraud loophole for good.”
SB 694 addresses lax federal enforcement, which allows predatory claimsbusinesses to flourish nationwide, according to Newsom’s office. The unaccredited operators allegedly charge illegal and excessive fees while misleading veterans seeking help with U.S. Department of Veterans Affairs benefits.
The Newsom Administration asserts that California has “one of the strongest veteran support networks in the nation,” including County Veteran Service Officers (CVSOs), who provide free, federally accredited assistance to veterans statewide.
The new law creates new guardrails against scams and predatory businesses and enhances oversight and enforcement to protect veterans from exploitation.
SB 694 passed out of the California Assembly on Sept. 4, 2025, with a 68-0 vote. The Senate concurred on January 26, 2026, with a vote of 25-6.
“This new law builds on the principle that veterans should not be charged, much less gouged, when seeking assistance for applying to their disability benefits, which they rightfully earned in the service of their country,” Archuleta said.
California is home to over 160,000 Black veterans, which represents approximately 9% of the total veteran population in California. The Golden State has the largest veteran population of any state, with estimates ranging from about 1.6 million to 1.8 million veterans, according to the California Department of Veterans Affairs (CalVet).
The bill has received pushback from some veterans and groups such as Vets Know the Facts, an advocacy group committed to providing information and fighting misinformation about government policies that affect veterans’ lives.
Other organizations that opposed SB 694 include the Black Veterans Empowerment Council, Purple Heart Homes, United Veteran Benefits Agency, and Veterans Guardian.
At the signing ceremony at the State Capitol last week, Newsom responded to questions about his decision to sign the bill even though the NAACP, the Urban League, and some veteran groups urged him to veto it.
When California Black Media (CBM) asked whether there is a plan in place to ensure that veterans of color do not face increased barriers, reduced choice, or longer delays in accessing the benefits,
Newsom said the issue “was obviously brought up during the legislative process,” and deferred the inquiry to Lindsey Sin, secretary of the California Department of Veterans Affairs (CalVet).
Sin explained to CBM that the problem is a “discussion about equity, but it’s not equity. It’s exploitation.”
“First of all, we want to ensure that every veteran has the opportunity to file claims through a free, accessible, quality, and responsive accreditation process with an accredited claims agent,” she said. “That is really the key.”
Sin said last year her office filed over 300,000 claims on behalf of veterans totaling $687 million in new and one-time awards. The DVA also took in 24,000 applications for the tuition fee waiver programs, resulting in $175 million for veterans to enroll in college or educational programs.
“I will say the Department of Veterans Affairs Office of Inspector General (VA OIG) and the Government Accountability Office (GAO) have historically found racial inequities,” Sin told CBM.
Sin believes the unfairness of claims increased after the Veterans Benefits Administration (VBA) Office of Equity Assurance was eliminated in March 2025 by the DVA.
Established under the Biden administration, the office was created to address disparities in how benefits are provided to minority veterans. Its elimination was part of more recent federal government efforts to decrease the VA workforce and cut costs, impacting offices that focused on equity.
“We absolutely recognize that (inequities occurred), but that happened after the Trump Administration had closed the VBA Office of Equity Assurances,” Sin said. “It is more important for our state to ensure that we are tracking this issue, and we are ensuring that all veterans, regardless of who they are and where they come from, have access to those benefits.”