New litigation fund 

The Governor is working with lawmakers to establish a litigation fund to bolster the state’s legal resources in response to the incoming federal administration’s signaled policy proposals that would harm the state. Working with the Legislature, the Governor is proposing a new litigation fund of up to $25 million for the California Department of Justice (DOJ) and state agencies to defend California from unconstitutional federal overreach, challenge illegal federal actions in court, and take administrative actions to reduce potential harm.

Why this matters

The Governor’s proposed legal investment has the potential to yield significant returns for California families and protect billions of dollars in state funding. The new litigation fund will help safeguard critical funding for disaster relief, health care programs, and other vital services that millions of Californians depend on daily. It will also position the state to defend against unlawful federal actions that could jeopardize not only tangible resources but also immeasurable protections, such as access to reproductive health care, access to clean air and water, and fundamental civil rights.

During President-elect Trump’s first term, his administration made multiple attempts to withhold federal funds from California and harm the state. From 2017 to 2021, the California DOJ filed 122 lawsuits against the Trump administration in response. The state invested approximately $42 million to support this litigation. This legal action not only safeguarded California’s values and residents but also delivered tangible financial benefits. For example, in just one successful case, the federal government reimbursed California nearly $60 million in federal public safety grants as a result of litigation. In another case won against the Trump administration for delaying energy efficiency standards, the state’s victory was estimated to generate over $8 billion in energy savings for consumers over the next three decades. In another separate case, the state’s litigation protected billions of dollars in federal funding for California’s public health care and other federally funded programs that provide crucial health, education, and labor services. 

What comes next

Proposed legislation is expected to be introduced in the state Legislature. In the coming weeks, the Legislature has indicated it will hold committee hearings on the legislation. During this process, the Governor will actively collaborate with legislative leaders and the Attorney General to refine and advance the measure. The legislation is expected to reach the Governor’s desk and be signed into law before January 20, 2025.

Working with the incoming Trump Administration

While the state is prepared to lead efforts to challenge any unlawful actions by the federal government, Governor Newsom is committed to working with President-elect Trump wherever there is common ground to improve the lives of nearly 40 million Californians. Last month, Governor Newsom traveled to Washington, D.C., for a series of meetings at the White House and on Capitol Hill to discuss the approval of key initiatives to improve health care, mental health, and clean air in the state, as well as the approval of disaster relief funds. Governor Newsom looks to build on that momentum to continue to deliver for millions of Californians who rely on essential federal funding and programs that support their daily lives.

Bigger picture

Since 2019, California has set a national example in advancing civil rights, reproductive health care protections, climate action, and support for working families, including immigrant families. This session aims to ensure California’s resilience — the state’s progress will continue, no matter who is in the White House.

More information on the special session can be found here.