California Bill Tightens Rules Against ‘Claim Sharks’ Who Exploit Veterans

The state will require federal accreditation for paid help on veterans’ benefits claims and will allow some retirees to exclude up to $20,000 from state taxes.

California Gov. Gavin Newsom speaks at a bill signing event on Feb. 10, 2026. Courtesy of Gov. Gavin Newsom's Office

California will now require people who charge fees for helping veterans with federal benefits claims to hold federal accreditation, under a bill that Gov. Gavin Newsom signed on Feb. 10.

The new law, Senate Bill 694, which had bipartisan support, also adds state consumer protections aimed at limiting fees and restricting practices that state officials say have been used to exploit veterans navigating the Department of Veterans Affairs (VA) benefits system.