California bans fees for veterans' VA claims assistance

New law prohibits private companies from charging veterans for help filing disability claims with the Department of Veterans Affairs

Published on Feb. 10, 2026

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California has joined 10 other states in banning private companies from charging fees to veterans for help filing disability claims with the Department of Veterans Affairs. Governor Gavin Newsom signed a new law that prohibits unaccredited private companies from billing former military service members for assistance with their VA claims, closing a federal loophole that has allowed a booming industry of 'claim sharks' to emerge.

Why it matters

Many veterans have turned to private companies for help navigating the VA's complex claims process, only to face bills that can run into the thousands of dollars. Critics have called these companies 'claim sharks' because their fees are often five times the monthly benefit increase veterans obtain after using their services. The new law aims to protect veterans from being taken advantage of and ensure they receive the full benefits they have earned through military service.

The details

The new California law is part of a broader tug-of-war over how to regulate claims consulting companies. While California and 10 other states have moved to ban these companies, another group of mostly Republican-led states has legalized them. The VA's claims process can take months and sow uncertainty among applicants, leading some lawmakers to argue that veterans should have the option to use private companies. However, the overwhelming support for the bill from veterans' organizations like the American Legion and VFW, as well as Democratic leaders, suggests that most see these companies as predatory.

  • The new law will go into effect by the end of 2026.

The players

Gavin Newsom

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

Bob Archuleta

A Democratic state senator who carried the legislation to ban private companies from charging veterans for help with their VA claims.

Veterans Guardian

A North Carolina-based claims consulting company that spent $150,000 on California lobbyists over the past two years to fight the new law.

Veterans Benefit Guide

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

David West

A Marine veteran who is Nevada County's veterans service officer and was one of the main advocates 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 (CalMatters)

“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 (CalMatters)

“The veterans lose. They lose the option. You're taking an option away from them and you're putting all of the veterans into one box, and that to me is wrong.”

— Charlotte Autolino, Chairperson of the Veterans Employment Committee of San Diego (CalMatters)

“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 (CalMatters)

What’s next

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

The takeaway

This new law in California represents a significant victory for veterans' advocates who have long criticized the predatory practices of private claims consulting companies that have profited off the complex VA disability claims process. By banning these fees, the state is ensuring that veterans can access the full benefits they have earned without having to pay exorbitant fees to third-party companies.