California Bans Fees for Helping Veterans File VA Claims

New law aims to protect veterans from "claim sharks" who charge thousands in consulting fees

Published on Feb. 12, 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 is part of a broader effort to regulate the booming industry of "claim sharks" that charge veterans exorbitant fees, sometimes up to five times their monthly benefit increase, to assist with the claims process.

Why it matters

Many veterans rely on private companies to help them navigate the complex VA claims process, but these companies have been accused of taking advantage of veterans by charging extremely high fees. The new California law aims to protect veterans from these predatory practices and ensure they are able to keep more of the benefits they have earned through military service.

The details

The new law bans unaccredited private companies from billing veterans for help with VA claims, which was already technically illegal under federal law but had gone largely unenforced. The law is part of a broader debate over how to regulate the claims consulting industry, with some states moving to ban the practice entirely while others have legalized it. Supporters of the law say it will prevent veterans from being "taken advantage of" by companies looking to "make millions of dollars on the back of our veterans", while critics argue it takes away an option that some veterans find helpful.

  • The new law was signed by California Governor Gavin Newsom on February 12, 2026.
  • The law will go into effect by the end of 2026, requiring the private claims consulting companies to shut down or dramatically change their business models.

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 fees for veterans' VA claims assistance.

Veterans Guardian

A North Carolina-based claims consulting company that spent $150,000 on California lobbyists 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 the Nevada County veterans service officer and was a main advocate for the new California 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 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 the private claims consulting companies to shut down or dramatically change their business models in order to comply.

The takeaway

This new California law represents a significant victory for veterans' advocates who have long criticized the predatory practices of claims consulting companies that charge exorbitant fees to help veterans access the benefits they have earned. By banning these fees, the state is ensuring that more of the money goes directly to the veterans themselves rather than lining the pockets of private companies.