California Bans Fees for Veterans' VA Claim Assistance

New law prohibits private companies from charging former military members for help filing disability claims.

Published on Feb. 10, 2026

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California has passed a new law that prohibits unaccredited private companies from billing former military service members for help with their Department of Veterans Affairs claims. The law aims to crack down on a booming industry that charges veterans thousands of dollars for assistance in obtaining the benefits they earned through military service, which was already illegal under federal law but lacked enforcement.

Why it matters

This law is part of a broader effort to protect veterans from predatory companies that have taken advantage of the complex VA claims process. Many veterans turn to private firms for help, only to face exorbitant bills that can eat up a significant portion of their monthly benefits. The new law in California seeks to close this loophole and ensure veterans can access the benefits they've earned without having to pay excessive fees.

The details

The new California law prohibits unaccredited private companies from billing former military service members for help with their VA disability claims. This practice was already illegal under federal law, but Congress removed criminal penalties 20 years ago, allowing a booming industry of 'claim sharks' to emerge. These companies often charge veterans fees that are five times the monthly benefit increase they obtain, with some bills reaching $10,000 or more.

  • The new law will go into effect by the end of 2026.
  • The law was signed by Governor Gavin Newsom on February 11, 2026.

The players

Gavin Newsom

The Governor of California who signed the law banning fees for veterans' VA claim assistance.

Bob Archuleta

A Democratic state senator who carried the legislation to ban these fees for veterans.

Veterans Guardian

A North Carolina-based company that spent $150,000 on California lobbyists to fight the bill.

Veterans Benefit Guide

A Nevada-based company that spent $371,821 lobbying on the bill and a similar measure that failed in 2024.

David West

A Marine veteran who is the Nevada County veterans service officer and was a main advocate for the new law.

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What they’re saying

“We owe our veteran community a debt of gratitude — for their years of service and sacrifice. 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.”

— Gavin Newsom, Governor of California (Patch.com)

“We owe it to our veterans to stand with them and to protect them from being taken advantage of while navigating the benefits they've earned. This is not about politics; it's about doing what's right. Making millions of dollars on the back of our veterans is wrong. They've earned their benefits. They deserve their benefits.”

— Bob Archuleta, State Senator (Patch.com)

“The veterans of California are going to know that when (Newsom) says he's taking care of everybody, he's including us; that he values those 18- and 19-year-olds who are raising their hands, writing a blank check in the form of their lives; to then ensure that they aren't writing checks to access their benefits.”

— David West, Nevada County Veterans Service Officer (Patch.com)

What’s next

The new law will go into effect by the end of 2026, requiring unaccredited private companies to shut down or dramatically change their business models in California.

The takeaway

This law represents a significant victory for veterans' advocates who have long fought against predatory companies exploiting the complex VA claims process. By banning these excessive fees, California is ensuring veterans can access the benefits they've earned without having to pay exorbitant sums to private firms.