AMENDED IN ASSEMBLY MARCH 23, 2026
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
98
Introduced by Assembly Member Garcia
February 19, 2026
An act to add Division 8 (commencing with Section 11200) to the Labor Code, relating to immigration. benefits.
Vote: majority Appropriation: no Fiscal committee: yes Local program: no
LEGISLATIVE COUNSEL’S DIGEST
Existing law requires the Employment Development Department to implement and administer the unemployment insurance program within this state, and provides for the payment of unemployment compensation benefits to eligible individuals who are unemployed through no fault of their own.
Under existing federal law, a state may provide state or local public benefits, including unemployment benefits, to otherwise ineligible aliens or immigrants, as specified, only through a state law enacted after August 22, 1996, which affirmatively provides for such eligibility.
This bill would establish the Immigration Enforcement Emergency Relief Program administered by the department, as specified. The bill would establish the Immigration Enforcement Emergency Fund within the State Treasury for the purposes of the program and would make all moneys in the fund available, upon appropriation by the Legislature, for purposes of the program. This bill would declare that it is a state law enacted to provide benefits to otherwise ineligible aliens or immigrants as set forth in the above-referenced federal law.
This bill would require the department, by July 1, 2027, to promulgate regulations to implement the program, including regulations to establish, among other things, a process by which individuals or qualifying beneficiaries may apply for program benefits. The bill would authorize a regulation adopted as described above to be adopted as an emergency regulation, as specified. The bill would require the department to begin accepting applications for program benefits, as defined, as soon as is practicable following the above-described promulgation of regulations.
This bill would impose specified requirements on the collection and use of personal information, as defined, for purposes of the program, including, but not limited to, requiring that the department establish procedures and safeguards against unauthorized access to, and use of, that personal information, as specified. The bill would make personal information and documents collected for purposes of the program confidential and exempt from disclosure, as specified. The bill would require an individual, as defined, filing a new claim for program benefits to be advised of certain information, including that the program benefits are subject to federal income taxation.
This bill would entitle an individual eligible to receive program benefits to payment every 14 days for each week during which the individual qualified, calculated as prescribed, not to exceed 20 cumulative weeks. The bill would base the determination of an individual’s eligibility for program benefits for each week on the presence of certain conditions, including, but not limited to, that the individual suffered a loss of earned income, as defined, caused by certain actions by the United States Department of Homeland Security.
This bill would condition implementation of the program upon an appropriation by the Legislature. The bill would declare its provisions severable and would make various findings and declarations related to the necessity and purpose of the program. The bill would make findings and declarations related to a gift of public funds.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
This bill would state that it is the intent of the Legislature to enact legislation to create a fund that will serve as a vehicle for financial relief for immigrants suffering loss of employment as a result of being affected by immigration enforcement activities.
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares all of the following:
(a) California is home to nearly 11,000,000 immigrants, the nation’s largest by population and proportion, who enrich our communities, strengthen our economy, and contribute to the cultural and social fabric of the Golden State. Immigrants play a vital role in stimulating the economy as workers, business owners, taxpayers, and consumers. Their contributions boost national economic growth and lower the United States deficit. Immigrants help power the fourth largest economy in the world, sourcing one-half of a trillion dollars’ worth of products. Immigrants also make up the vast majority of California’s agricultural workers, and fuel key industries like manufacturing, construction, and hospitality. California’s undocumented immigrants contributed $8.5 billion dollars in state and local taxes in 2022 and play a vital role in stimulating the state’s economy.
(b) United States Immigration and Customs Enforcement (ICE), along with armed federal agents, have conducted military-style immigration raids and arrests at work sites, homes, and public spaces, creating a climate of fear among immigrants going to work, dropping their children off at school, attending faith services, seeking medical or emergency services, or shopping for essential needs. Recent immigration raids have been fueled by arbitrary detention quotas, unconstitutional search and seizures, blatant violations of court orders, and discriminatory racial profiling. Immigration raids disproportionately affect communities of color, separate families, undermine public safety and trust in local governments, and deter families from accessing health care, education, and emergency assistance. The federal escalation appears to be part of a deliberate strategy to provoke chaos, suppress and criminalize dissent, and terrorize immigrants across California and the nation, regardless of their legal status. The federal administration has signaled an intention to continue nationwide immigration raids and arrests, creating an ongoing threat and danger to California families, workplaces, and neighborhoods.
(c) Immigration raids and the fear of immigration raids threaten the economic security of millions of Californians, many of whom are ineligible for unemployment insurance to replace household income lost when they miss work due to federal immigration activities. Children and families are also impacted when a parent or a member of their household loses income and may be forced to accumulate debt or forego basic necessities like food or medical care. California’s economy suffers from lost income. Recent research finds that California experienced a 2.9-percent decline in private sector employment in the months following peak escalations in federal immigration enforcement, a rate of decline comparable only to the Great Recession and the onset of the COVID-19 pandemic. These declines are most concentrated in areas experiencing the most aggressive immigration enforcement activities.
(d) Earned income replacement programs help to alleviate the inherent reduction in consumption and economic activity that results from lost wages.
SEC. 2.
Division 8 (commencing with Section 11200) is added to the Labor Code, to read:
Division 8. Immigration Enforcement Emergency Relief Program
Chapter 1. General Provisions
This division shall be known, and may be cited as, the Immigration Enforcement Emergency Relief Program.
The Legislature finds and declares all of the following:
(a) The purpose of this division is to provide earned income replacement benefits to Californians who have lost income due to federal immigration enforcement activities but who have not received state or federal unemployment insurance benefits from programs administered by the department.
(b) It is the intent of the Legislature to authorize persons who are not lawfully present in the United States, as members of the class of workers excluded from unemployment insurance benefits, to participate in and receive program benefits from the Immigration Enforcement Emergency Relief Program.
(c) In connection with subdivision (b), this division is a state law that may provide assistance and services for individuals not lawfully present in the United States within the meaning of subsection (d) of Section 1621 of Title 8 of the United States Code.
For purposes of this division, the following definitions shall apply:
(a) “Department” means the Employment Development Department of the Labor and Workforce Development Agency.
(b) “DHS” means the United States Department of Homeland Security, including its employees and agents.
(c) “Director” means the Director of Employment Development.
(d) “Earned income” means any and all compensation for services whether performed as an employee or as an independent contractor, in addition to any and all compensation obtained by self-employment.
(e) “Individual” means a person who is applying for or receiving disbursements pursuant to this division, including a minor, or a person who is qualified to receive benefits pursuant to this division but who is unable to apply and is being represented by a qualifying beneficiary.
(f) “Personal information” means any type of information that identifies or describes an individual, including, but not limited to, the individual’s name, social security number, taxpayer identification number, physical description, home address, home telephone number, education, financial matters, and medical or employment history. It includes statements made by, or attributed to, the individual.
(g) “Program benefits” means money payments payable to an individual pursuant to this division.
(h) “Qualifying beneficiary” means a household member of an individual who is otherwise unable to apply on their own behalf, or a parent, guardian, or adult relative of an eligible minor household member who cannot apply on their own behalf.
The implementation of this division is contingent upon an appropriation by the Legislature for this purposes in the annual Budget Act or other enactment.
Chapter 2. Administration
(a) The Immigration Enforcement Emergency Fund is hereby established within the State Treasury and shall be administered by the department.
(b) All money in the Immigration Enforcement Emergency Fund shall be available, upon appropriation by the Legislature, to carry out the purposes of this division.
(a) (1) By July 1, 2027, the department shall adopt regulations to implement this division, including regulations to establish all of the following:
(A) A process by which individuals or qualifying beneficiaries may apply for program benefits.
(B) A process for notifying individuals or qualifying beneficiaries of the acceptance or denial of their application in a timely manner.
(C) A process for individuals or qualifying beneficiaries to request a review of an application denial.
(2) Following the adoption of the regulations, the department shall begin accepting applications for program benefits as soon as practicable.
(b) In administering this division, the department shall not do any of the following:
(1) Request, orally or in writing, information related to an individual’s nationality, place of birth, or eligibility for a social security number.
(2) Compel or request an individual to admit in writing whether they have proof of lawful presence in the United States.
(3) Contact an individual’s current, former, or prospective employer for any purpose, including to verify employment status. This paragraph does not prohibit the department from using other means to verify employment status.
(4) Record an individual’s immigration or citizenship status.
(c) All documents retained for purposes of this division shall not be kept any longer than is necessary to administer this division.
(d) A regulation adopted pursuant to this section may be adopted as an emergency regulation in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of those regulations is hereby deemed to be an emergency and shall be considered by the Office of Administrative Law as being necessary for the immediate preservation of the public peace, health and safety, and general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, an emergency regulation adopted by the department pursuant to this section shall be filed with, but not be repealed by, the Office of Administrative Law, and shall remain in effect until repealed by the department.
(a) Personal information and documents collected pursuant to this division are confidential and exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), and may be used or disclosed only for purposes of administering this division, except as necessary to comply with an order, warrant, or subpoena, as issued by a court.
(b) In performing the duties created by this division, the department shall establish procedures and safeguards against unauthorized access to, and use of, personal information collected by the department pursuant to this division by any public or private person or entity other than an employee of the department or a person or entity acting as an agent for the department for the purpose of administering this division.
(c) Notwithstanding any other law, personal information and documents collected under this division shall not be shared with other governmental agencies except as necessary to administer this division.
(a) The department shall provide a person entitled to program benefits under this division the option to receive payments by direct deposit, as regulated under the federal Electronic Fund Transfer Act (EFTA) (15 U.S.C. Sec. 1693 et seq.), into a qualifying account, as defined in paragraph (2) of subdivision (a) of Section 1339.1 of the Unemployment Insurance Code of the recipient’s choice, in addition to other alternative disbursement payment methods, including, but not limited to, debit cards and checks.
(b) Program benefits directly deposited pursuant to this division shall be directly deposited only into a qualifying account as defined in paragraph (2) of subdivision (a) of Section 1339.1 of the Unemployment Insurance Code.
(c) A person or entity that is not an insured depository financial institution that offers, maintains, or manages an account that is not a qualified account as defined in paragraph (2) of subdivision (a) of Section 1339.1 of the Unemployment Insurance Code shall not solicit, accept, or facilitate the direct deposit of program benefit payments to the account.
(a) The department shall promptly pay program benefits to claimants eligible pursuant to Chapter 2 or shall promptly deny a claim if it finds the claimant ineligible.
(b) The department shall promptly serve notice of any determination made with respect to a claimant’s eligibility on the claimant in any manner the department chooses, including, but not limited to, personally, electronically, or by mail. Service of notice shall be deemed completed on the date on which the notice is sent unless personally served in which case it shall be deemed completed on the date on which it is delivered.
(c) (1) For the purposes of this section, “notice” means that notification which apprises the party of a determination of eligibility and allows that party to respond accordingly.
(2) If the department is or should be aware that the notice was not received by the party to whom it was addressed, including by, but not limited to, the return to the department of the notice by the United States Postal Service, the department shall reissue the notice at such time as the department can determine a corrected mailing address for the affected party or otherwise ensure receipt. The affected party shall have the right to appeal pursuant to the appeal process established by department regulations.
(a) An individual filing a new claim for program benefits shall, at the time of filing the claim, be advised of all of the following:
(1) That program benefits are subject to federal income tax.
(2) That requirements exist pertaining to estimated tax payments.
(3) That the individual may elect to have federal income tax deducted and withheld from the compensation at the amount specified in the Internal Revenue Code.
(4) That the individual is permitted to change a previously elected withholding status.
(b) Amounts deducted and withheld from program benefits shall be made in accordance with procedures specified by the United States Department of Labor and Internal Revenue Service pertaining to the deducting and withholding of income tax, and in accordance with the priorities established in department regulations developed by the director.
Chapter 3. Immigration Enforcement Emergency Relief Benefits
An individual or the individual’s qualifying beneficiary is eligible for program benefits in any week in which all of the following are true:
(a) The individual suffers a loss of earned income caused by one or more of the following:
(1) The arrest, detention, or other deprivation of liberty of the individual as a result of action by DHS.
(2) The deportation or removal of the individual pursuant to federal immigration law, including, but not limited to, the Immigration and Nationality Act (8 U.S.C. 1101, et seq.).
(3) An injury or illness as a result of action by DHS.
(4) A business or worksite where the individual works reduced or ceased operations as a result of action by DHS at or near the business or worksite.
(5) Adverse employment action by an employer due to DHS action at or regarding the employer’s business or worksite or the employer’s receipt of an Employer Correction Request “no-match letter” from the United States Social Security Administration or the United States Internal Revenue Service.
(6) Adverse employment action that would constitute an unfair immigration-related practice pursuant to Chapter 3.1 (commencing with Section 1019) of Part 3 of Division 2.
(7) Absence from work due to reasonable fear for personal safety as a result of DHS activity at or near the individual’s home or worksite.
(8) Other DHS action that the individual demonstrates is the proximate cause of the loss of earned income.
(b) During each of the four weeks preceding the first date of income loss described in paragraph (1), the individual received earned income from the equivalent of 20 or more cumulative hours of work.
(c) The individual resided in California at the time of the first date of income loss described in subdivision (a).
(d) The individual does not receive, or is not due to receive, any of the following as a result of income loss described in subdivision (a):
(1) Unemployment compensation pursuant to Chapter 5 (commencing with Section 1251) of Part 1 of Division 1 of the Unemployment Insurance Code.
(2) Paid family leave pursuant to Chapter 7 (commencing with Section 3300) of Part 2 of Division 1 of the Unemployment Insurance Code.
(3) Disability benefits pursuant to Part 2 (commencing with Section 2601) of Division 1 of the Unemployment Insurance Code.
(4) Temporary or permanent disability benefits pursuant to Article 3 (commencing with Section 4650) of Chapter 2 of Part 2 of Division 4.
(a) (1) An individual eligible for program benefits shall receive a payment every 14 days for each week during which they qualified for benefits.
(2) The benefit amount for an applicable week shall be equal to the average of the cumulative earned income per week across the four weeks prior to the first date of income loss, as described in subdivision (a) of Section 11250, minus the earned income from the applicable week, not to exceed four hundred fifty dollars ($450) per week.
(3) For purposes of this subdivision, income shall be determined by evidence provided by the individual, including, but not limited to, bank statements, wage statements or pay checks, receipts, business records, or affidavits.
(b) An individual shall not be eligible for program benefits for more than 20 cumulative weeks.
Notwithstanding any law, minors who are eligible for program benefits may be paid and receive benefits in their own right, and a receipt signed by a minor shall be valid and binding.
Where an individual who would be eligible for program benefits is not reasonably able to make a claim due to any circumstances described in subdivision (a) of Section 11250, the director shall allow the filing of a claim for these benefits by a qualifying beneficiary, in the absence of any other legally authorized representative of the individual. The payment shall be made upon an affidavit executed by the eligible individual claiming to be entitled to the benefits and the receipt of the affidavit or affidavits shall fully discharge the director from any further liability with reference to the payments, without the necessity of inquiring into the truth of any of the facts stated in the affidavit.
Program benefits due to a deceased or legally declared incompetent individual under this division may be paid to the person or those persons who appear to the director to be legally entitled thereto in accordance with authorized regulations. The payment shall be made upon an affidavit executed by the person or persons claiming to be entitled to the benefits and the receipt of the affidavit or affidavits shall fully discharge the director from any further liability with reference to the payments, without the necessity of inquiring into the truth of any of the facts stated in the affidavit.
SEC. 3.
The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
SEC. 4.
The Legislature finds and declares that the addition of Division 8 to the Labor Code by this act serves the public purpose of helping to alleviate the inherent reduction in consumption and economic activity that results from lost wages and does not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.
SEC. 5.
The Legislature finds and declares that Section 2 of this act, which adds Division 8 to the Labor Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
This act strikes a balance between furthering the public interest in rectifying the unjust exclusion of immigrant workers from essential social safety net programs like unemployment insurance and protecting the privacy of individuals receiving or applying for the benefits outlined in this act.
It is the intent of the Legislature to enact legislation to create a fund that will serve as a vehicle for financial relief for immigrants suffering loss of employment as a result of being affected by immigration enforcement activities.