Business and Community Leaders Champion Legal Defense Fund to Protect California’s Economy from Republican Chaos in D.C.

SACRAMENTO — Community and business leaders across California are championing Speaker Robert Rivas and Assembly Democrats for delivering a Legal Defense Fund that will protect residents and the state’s economy.

The legislation, which Governor Newsom signed into law on Friday, will ensure that small businesses, nonprofits, veterans and families seeking health care or food assistance will be protected from the Republican Freeze and threats from the White House.

On Monday, Assembly Democrats voted overwhelmingly to pass two bills that will strengthen California economic interests and communities: 

• A legal defense fund that allocates $25 million for the California Department of Justice to protect California taxpayers and the state’s economy from hostile action in Washington
• Funding for immigration Legal Aid and Services organizations thatassist veterans, students, renters, families, victims of domestic violence and law-abiding worker immigrants, who pay more than $130 billion annually in state and federal taxes and contribute over $1 trillion yearly to the California economy. In a letter of direction, the Legislature stated that this bill’s funding will not go to legal defense for people convicted of violent and serious felonies.

The legislation (SBX1-1 and SBX1-2) strengthens California’s ability to fight unlawful and unconstitutional actions by the Trump administration. The bills pass on the heels of the President’s reckless attempt last week to freeze Congressionally approved federal funding, loans and grants, which jeopardizes funding for small business loans, schools, housing assistance, nonprofit grants, wildfire protection and Southern California wildfire relief, and health care and research.

What Speaker Robert Rivas Says

In remarks to the State Assembly on Monday, Speaker Rivas told lawmakers they needed to act swiftly and urgently to protect residents:

“Our job, above all else, is to protect our residents whether the threat is wildfires, other natural disasters or threats to their civil liberties and freedoms,” Speaker Rivas said. “Let me be blunt – right now, Californians are being threatened by an out-of-control administration in Washington—that doesn’t care about the Constitution... and thinks there are no limits to its power. Increasingly, our own residents are being threatened by actions taken by the Trump administration, and it is our duty to rise to the moment.”

What California Community Leaders Say About a Legal Defense Fund to Protect Our Economy

“We applaud the Senate, Assembly and Governor for acting to ensure California has the resources necessary to act if federal policies will negatively impact Californians. The recent memo from the Office of Management and Budget raised serious questions of the potential impacts of abrupt cuts in federal funding, which could have consequences for healthcare delivery, disaster recovery, emergency response, and other critical government functions. This action is not about antagonizing the federal government but instead being prepared to protect our residents if policy action taken at the federal level has intended, or unintended, negative consequences on the communities we serve.” — Brian K. Rice, President, California Professional Firefighters

"Federal funding and programs are critical to helping safety net providers be a lifeline for millions of Americans. We can’t play politics with people’s lives. We thank the State of California for acting swiftly to put the necessary resources in place to respond to any threats to our federal programs and funding." — Louise McCarthy, President & CEO, Community Clinic Association of Los Angeles County

“This $50 million funding package is about survival for the small and minority-owned businesses that form the backbone of our local economy, many of which face steep challenges in accessing capital, contracts, and protections. The Trump administration’s freeze on federal funds has only deepened this uncertainty. We are grateful to the legislature for taking action to help ensure these businesses have the resources they need to thrive.” — Pepi Jackson, President & CEO, Riverside County Black Chamber of Commerce

“California students and schools rely on federal funds every day. I see it in our district — this support is crucial. The threatened freeze of federal dollars puts incredibly important programs, like special education — at risk. We have to be in a position to protect our schools, and the children in them. So I support the Legislature’s actions today, because nothing is more important than the well-being of the next generation.” — Gina Clayton-Tarvin, School Board Trustee, Ocean View School District of Orange County

“Western Center applauds the Legislature’s passage of SBX1-1 and SBX1-2 to proactively protect low-income Californians who need food, healthcare and shelter to survive. When the whole system is threatened—like it was last week—legislation that provides California with the resources to fight against these threats to safety net programs is critical. Programs like Medi-Cal, SNAP, and WIC provide vital healthcare access, help food-insecure families put food on the table, and are essential to ensure that every Californian has their basic needs met. Continued funding to legal aid organizations — which often act as the first line of defense for low-income and immigrant communities facing civil legal issues — is paramount, and Western Center wholly supports the necessary budget reinforcement to stand strong against injustice and discriminatory policies that further jeopardize families already suffering economic hardships.” — Linda Nguy, Associate Director of Policy Advocacy, Western Center on Law and Poverty

“We, the immigrant community of CA, feel seen and supported with the passage of bills in Sacramento today. They are important and necessary for CHIRLA’s mission to create a just society fully inclusive of immigrants. Since 1986, we have been working hard to advance the human and civil rights of immigrants and refugees in California. We have always supported policies that advance justice and full inclusion for all immigrants. As one of the largest immigrant rights organizations in the country, we remain committed to organizing, educating and defending immigrants and refugees in the streets, in the courts, and in the halls of power. We will not allow the Trump administration to threaten, harm or derail our efforts to continue to protect those who contribute so much to our great state, especially when the stakes are so high and the rhetoric is so inhumane. We will continue to defend our immigrants.” — Angélica Salas, Executive Director, Coalition for Humane Immigrant Rights (CHIRLA)

Economic Impact of California Immigrant Workers

• California immigrants pay nearly $130 billion annually in state and federal taxes (USC CA Immigrant Data Portal 2021)
• 88% of farmworkers in CA are immigrants—that’s 880,000 people. Approximately half are undocumented. (JBS International for the US Department of Labor)
• Immigrants hold one-third of all tourism and hospitality jobs in California. (LA Times Analysis of 2022 US Census Data)
• We must rebuild LA and increase affordable housing. Neither will happen without immigrants, who make up 41% of the construction workforce. (National Association of Homebuilders 2023)
• 50% of certified nursing assistants in CA nursing homes are immigrants. (Health Affairs 2021), and about 40% of child day-care workers. (LA Times Analysis of 2022 US Census Data)
• California immigrants contribute $715 billion in gross domestic product. (CA Immigrant Policy Center 2016)
• In 2022, undocumented immigrants contributed $8.5B in state and local taxes — an amount that would rise to $10.3B if these taxpayers were granted work authorization. (Institute on Taxation and Economic Policy (ITEP) 2022)