SB 1 X1
Page 1
SENATE THIRD READING
SB 1 X1 (Wiener and Gabriel)
As Amended January 10, 2025
Majority vote. Budget Bill Appropriation Takes Effect Immediately
SUMMARY
Amends the 2024 Budget Act to allow additional funding to be made available to the Department
of Justice for litigation challenges of federal policy that adversely impact the state, its taxpayers,
and residents.
Major Provisions
Allows the Department of Finance to increase funding for the Department of Justice by up to $25
million for the 2024-25 fiscal year for costs related to defending the state against enforcement and
legal actions taken by the federal government, filing affirmative litigation challenging actions
taken by the federal government, and taking administrative action authorized under state law to
mitigate the impacts of actions taken by the federal government, subject to notification of the Joint
Legislative Budget Committee; and
Requires reporting by the Department of Justice to annually report expenditures of funds provided
pursuant to this authority and the creation of an internet website that will include information on
litigation filed against the federal government.
COMMENTS
During the first term of the Trump Administration, the federal government enacted policies that
adversely impacted California taxpayers, program, funding, and institutions. The State of
California, through the Attorney General's office, filed at least 123 lawsuits to defend the State and
its residents from unlawful and improper federal actions, succeeding in protecting the rights of
Californians, preventing potential harm and loss of income, government services, and property
from federal action and retaining the State of California's authority and constitutionally protected
power.
As the State's lawyer, the Department of Justice's staff is typically funded through reimbursements
from the appropriate department that is requesting legal services. However, this funding model
did not work well for the nimble and varied unanticipated litigation costs associated with federal
action. For this reason, the state budget included a special "D-Cal" fund for work Department of
Justice staff performed related to federal action. This amount varied by year but was between
$2.1-$12.8 million per year, with a total of about $42 million over the four years of the Trump
Administration's first term. The 2024 Budget Act provides about $2.7 million for D-Cal actives in
the current fiscal year.
This bill would allow the Department of Finance to increase the D-Cal funds for the current year
in an expedited fashion, to allow the Department of Justice the ability to immediately respond to
any potential federal adverse action. With the bill, the Department of Finance has authority to add
up to $25 million in appropriations for this fiscal year, which ends on June 30, 2025. The actual
amount of the increase would reflect the expected workload from this effort, which should be better
known over the next few months. Any request for an increase by the Department of Finance would
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be subject to notification to the Joint Legislative Budget Committee notification, to allow the
Legislature to review the amount and resource justification for the request.
In addition to this bill, it is likely the 2025-26 budget act will also include dedicated funding for
this purpose for activities next year. This amount for these needs will be subject to discussion in
the regular budget process this spring. This bill includes important reporting language that is
designed to allow for continued discussion between the Legislature and the Department of Justice
and the administration on the current and ongoing needs for resources related to this important
work over the next few years.
According to the Author
This bill provides funding to protect the State of California and its taxpayers and residents from
unconstitutional and unlawful federal action.
Arguments in Support
None on file.
Arguments in Opposition
None on file.
FISCAL COMMENTS
This bill has a potential General Fund cost of $25 million.
VOTES
SENATE FLOOR: 27-9-3
YES: Allen, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Cervantes, Cortese,
Durazo, Gonzalez, Grayson, Laird, Limón, McGuire, McNerney, Menjivar, Padilla, Pérez,
Richardson, Rubio, Smallwood-Cuevas, Stern, Umberg, Wahab, Weber Pierson, Wiener
NO: Alvarado-Gil, Choi, Dahle, Grove, Hurtado, Niello, Ochoa Bogh, Seyarto, Valladares
ABS, ABST OR NV: Archuleta, Jones, Reyes
UPDATED
VERSION: January 10, 2025
CONSULTANT: Christian Griffith and Genevieve McCloy / BUDGET / (916) 319-2099 FN:
0000018