New Law for VA Help: A new law in California is going to change how some companies are doing business there. Governor Gavin Newsom has signed Senate Bill 694. This law stops private companies from charging veterans money to help them file claims with the US Department of Veterans Affairs if those companies are not federally accredited.
The law means that unaccredited firms can no longer take fees from former service members for helping them get disability payments or other VA benefits. State leaders say this will close a loophole that allowed so called claims consulting companies to earn big money from veterans who were trying to deal with a complicated federal system.
Newsom said, “We owe our veteran community a debt of gratitude for their years of service and sacrifice,” He also said, “By signing this law, we are ensuring veterans get to keep more money in their pockets and not line the coffers of predatory actors.”
How a 23% Cut Could Turn $2,000 in Social Security Into $1,540
The new rule will start by the end of the year. Companies now have limited time to get proper federal approval, change how they work, or stop operating in California.
California won’t stand idly by while Trump and his lapdog Republicans use their “Big, Beautiful Bill” to virtually eliminate all federal Planned Parenthood funding.
I just signed legislation delivering $90 million to reproductive health care providers across our state. pic.twitter.com/MoB7hwgtBH
— Governor Gavin Newsom (@CAgovernor) February 11, 2026
Why the State took this Step?
For many years federal rules said companies should not charge veterans for helping with claims. But criminal penalties were removed long ago and enforcement became weak. Because of that a new business sector grew. These companies promised faster approvals or higher disability ratings and asked for large payments in return.
Critics say some firms charged very high fees. In some cases the cost was several thousand dollars or even equal to multiple months of a veteran’s increased benefit.
Supporters of the new law say veterans do not need to pay anyone because free help already exists. Accredited veterans service officers and nonprofit groups offer assistance at no cost.
SSA Confirms Early Social Security Payment for February 2026
Key data illustrating the scope of that support network include:
- 316,000 claims filed by County Veteran Service Officers in 2024-2025
- An estimated $687 million in new or increased federal benefits secured
- Nearly 1 million veterans and family members assisted statewide
- About 1.5 million veterans living in California
Officials say this shows paid consulting is not necessary. They believe the free system already provides oversight and proper checks.
Veterans groups like the American Legion and the Veterans of Foreign Wars supported the bill. They argue that some veterans waiting months for decisions can feel pressured to sign costly contracts.
State Senator Bob Archuleta, who once served in the Army and wrote the bill, said, “Making millions of dollars on the back of our veterans is wrong,” He added, “They have earned these benefits.”
California Attorney General Rob Bonta also warned that dishonest operators create financial danger for veterans. The law now increases consumer protections, limits access to sensitive government systems and requires federal accreditation before anyone can officially represent a veteran in compensation claims.
Choices may be Limited
Some lawmakers and business representatives believe paid consultants help veterans when the federal system is overloaded. Claims can take many months or even years to process.
Opponents argue that banning private firms removes an option for veterans who want faster service or special guidance. Charlotte Autolino, who works as a veterans employment advocate, said, “The veterans lose. They lose the option,”
Some companies have already challenged similar laws in other states and more legal fights over this issue may happen across the country.
Part of Bigger Support Plan
California says this law is only one part of a larger effort to support veterans. The state has introduced a tax break of up to $20,000 for military retirement income. It has also expanded education benefits for military families and increased spending on housing and mental health programs.
Social Security February Payments: Full SSI and Retirement Schedule
Additional statewide support measures include:
- Tuition waivers at public colleges for eligible dependents of veterans
- Expanded housing programs for low income or homeless veterans
- Mental health funding through voter approved bonds and grant programs
- Workforce initiatives translating military training into civilian credentials
California has around 160,000 active duty service members and nearly 1.5 million veterans living in the state.
