Does part of California’s workers’ compensation need an overhaul? What to know

California Gov. Gavin Newsom is pushing to reform the Subsequent Injuries Benefit Trust Fund through a budget trailer bill, citing ballooning costs and a surge in claims. Critics warn the changes could strip benefits from thousands of disabled workers with pending cases.

Here is our full story: “Should state’s workers’ comp be fixed? Or is that a ‘wrecking ball to a safety net’?”

Here are key takeaways:

• The Subsequent Injuries Benefit Trust Fund, or SIBTF, was created in 1945 to help severely disabled World War II veterans return to work. Employer contributions have grown from $35 million in 2014-15 to $850 million last year, according to the Legislative Analyst’s Office.
• Nearly all SIBTF claimants receive $1,700 per week for life — the state’s most generous disability benefit. Annual applications jumped from about 850 between 2010 and 2014 to 5,379 in 2025, following a 2014 state Supreme Court ruling that broadened qualifying pre-existing conditions.
• Newsom’s trailer bill tightens eligibility, narrows qualifying pre-existing conditions and strengthens oversight of medical evaluations. Opponents say roughly 30,000 permanently disabled workers with pending claims could see them effectively canceled.
• Former state Attorney General Bill Lockyer is lobbying against the bill for the California Coalition for Injured Workers, calling it a “wrecking ball to the safety net.” The California Chamber of Commerce and dozens of industry groups back the reforms, arguing costs burden employers and local budgets.
• The Legislature must pass a budget by June 15, with trailer bill amendments due before July 1. Opponents hope to negotiate a compromise that grandfathers in existing applicants.