In a landmark move to safeguard veterans from exploitative practices, California has just enacted groundbreaking consumer protection legislation that puts a stop to predatory benefit claims businesses. Governor Gavin Newsom signed SB 694, a bill that establishes critical guardrails to prevent fraudulent actors from taking advantage of those who have served our country.

The new law targets unaccredited operators who have been charging illegal and excessive fees while misleading veterans navigating the complex federal benefits system. By requiring federal accreditation for anyone preparing or presenting veteran benefit claims, California is creating a robust shield against financial abuse.

Key protections in the legislation include prohibiting unauthorized fees, expanding consumer legal remedies specifically for veterans’ benefits claims, and protecting veterans’ privacy by preventing unauthorized access to secure government systems. This comes alongside a new $20,000 state income tax credit for military retirees, demonstrating California’s comprehensive commitment to supporting veterans.

The impact of these protections is significant. In 2024-2025, County Veteran Service Officers filed 316,000 claims, securing an estimated $687 million in federal benefits for California veterans and their families. However, predatory practices have long threatened these hard-earned resources.

“As a Navy veteran, I know firsthand how complex navigating benefits can be, and how devastating it is when bad actors exploit those who served,” said Josh Fryday, California’s Chief Service Officer. The legislation sends a clear message that California will not tolerate fraud against those who have sacrificed for our country.

With nearly 1.5 million veterans calling California home, this law represents a crucial step in providing comprehensive support and protection for those who have served. By creating stringent oversight and enforcement mechanisms, California is setting a national standard for veteran support and consumer protection.