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California steps up to help military, veteran families while the federal government is AWOL

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Oct 15, 2025

California steps up to help military, veteran families while the federal government is AWOL

What you need to know: California has taken recent steps to help military and veteran families, even as the federal government leaves them behind.

SACRAMENTO – As California honors the 250th anniversary of the Armed Forces, the state has taken a number of steps to support military and veteran families. There are about 160,000 active duty service members and nearly 1.5 million veterans who call California home. Through legislative action, budget investments and key partnerships, California continues to stand up for our esteemed military members and veterans.

Time and again the members of our military have proven their dedication and selflessness to our country. We must honor them through our actions every single day and continue committing to their success for years to come.

Governor Gavin Newsom

Quality of life for military families

Tax reduction
Honoring the many sacrifices of our armed services personnel and families, Governor Newsom, through the 2025-26 State Budget process, included a new state income tax break for military retirees and their surviving spouses. For the first time, veterans receiving military retirement pay and families receiving payments from the federal Survivor Benefit Plan will be able to exclude up to $20,000 of their income each year from state income taxes. This tax cut helps retain retired service members in the state, while strengthening California's workforce and local economies.

Childcare access
The Department of Social Services worked with the Department of Defense to implement the Military Child Care in Your Neighborhood Plus program, expanding access to civilian childcare for military families.

Helping military-connected students
This year, Governor Newsom signed AB 88 and SB 67, which extend eligibility for the Cal Grant and Middle Class Scholarship Program to dependents of a member of the United States Armed Forces who maintains California as their state of legal residence. In addition, to reduce the burden on military-connected pupils and their families the state is publicly recognizing and designating specific public schools as California Purple Star schools.

Economic development and workforce initiatives

California is home to more than 30 federal military installations, with the U.S. Department of Defense directly employing more than 236,000 people in California.
  • California Jobs First: Designated space, defense, and satellite industries as top statewide economic priorities.
  • Military training: Created workforce pathways to translate military training into academic and professional credentials.
  • Economic success: Produced the California Military Economic Impact Study, delivering a data-driven assessment of the state's defense economy and its $66 billion annual contribution. The report continues to inform statewide workforce, infrastructure, and investment strategies.

Giving back to our veterans

Through the California Department of Veterans Affairs (CalVet), the state provides resources and support to veterans and their families through state and federal benefits they have earned through their selfless military service.

Connecting veterans with services
The California Transition Assistance Program educates separating service members and veterans about their earned benefits and connects them with local service providers. CalTAP has served more than 12,000 service members and veterans on every major military installation and college campus in California since 2017.

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Helping veterans locally
Accredited Veteran Service Representatives play a critical role within County Veterans Service Offices across the state. During 2024-2025, these individuals helped file 316,000 claims, resulting in an estimated $687 million in new or increased federal benefits for California veterans and their dependents.

Tuition fees waived
The CalVet College Tuition Fee Waiver Program waives tuition fees for children and spouses of qualified veterans at California public colleges and universities. The program supports dependents of veterans who are disabled, deceased, or classified as 100% disabled due to service-related injuries. Eligible individuals can attend California State University, University of California, or California Community Colleges without paying tuition. Governor Newsom signed AB 1745, which expanded eligibility for dependents of veterans by raising income caps, so more veteran dependents qualify.

Providing home ownership
For more than a century, the Home Loans program has assisted nearly 450,000 veterans achieve the dream of home ownership, with one of the lowest foreclosure rates in the nation and at no cost to taxpayers.

Veteran designation
Eligible veterans can add the word "VETERAN" to the front of their driver's license or ID card to signify their military service. This designation provides easier access to veteran benefits and privileges without the need to carry a Certificate of Release or Discharge from Active Duty.

Pathway to citizenship
CalVet has helped more than 800 veterans and their families take an important next step after active duty – becoming naturalized citizens.

California's Veterans Homes
There are eight veterans homes throughout seven counties statewide, which deliver top-rated care to more than 1,500 veterans through long-term residential and medical care for eligible veterans, their spouses and partners

Helping homeless veterans and improving mental health

Finding affordable homes can be extremely difficult for veterans, especially if they have experienced post-traumatic stress disorder, have suffered from a traumatic brain injury, or live with mental-health issues. Remaining stably housed can be even more difficult, especially without mental health support.

Prop 1, which was championed by Governor Newsom and approved by voters in 2023, is transforming California's mental health systems with a $6.4 billion Behavioral Health Bond for housing, services, and treatment for veterans and people experiencing homelessness.  Additionally, more than $2.1 billion of this funding is available for local Homekey+ projects. Homekey+ provides funding for local communities to build residential care settings and expand access to behavioral health treatment, with approximately 50% of the funding set aside for projects serving veterans.

In addition, through the California Veterans Health Initiative Mental Health Support Grant Program, $38 million in grant funding has helped families access free mental health care in urban and rural areas.

The Veterans Housing and Homelessness Prevention program helps develop new affordable housing specific for veterans and their families who are experiencing homelessness or have extremely low income. CalVet so far has awarded $580.5 million in permanent loan financing to 99 multifamily affordable, permanent, supportive housing projects through eight competitive rounds of funding. As of October 2025, 75 projects have completed construction, with 5,190 units occupied or in the process of leasing. Once all awarded projects are built, California will have added 6,561 units of affordable, permanent supportive housing.

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These strategies are working. Last year, California achieved the nation's largest reduction in veteran homelessness. In addition, California is outperforming the nation in limiting the increase in homelessness, with a growth of unsheltered homelessness of just 0.45%, compared to a national increase of nearly 7% in 2024.

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