Senator Wiener and Assembly Member Gabriel's amendment to the Budget Act of 2024 establishes new parameters for funding legal actions involving state and federal governments. The legislation authorizes the Department of Finance to augment appropriations by up to $25 million for defending against federal enforcement actions, filing affirmative litigation against federal actions, and implementing administrative measures to address federal government impacts.

The bill creates specific oversight mechanisms for these legal expenditures. The Department of Justice must submit annual reports through 2028 detailing the use of allocated funds, including information about outside counsel contracts and administrative actions taken. Additionally, the Department must maintain a public website documenting litigation funded through this provision, with updates required at least monthly through January 2029.

For state court actions, the legislation outlines procedures for paying attorney's fees from agency appropriations when cases involve the "private attorney general" doctrine, "substantial benefit" doctrine, or specific welfare-related writs of mandate. These payments require approval from the Director of Finance and must fully resolve attorney's fees for individual actions. When agencies lack sufficient funds for these payments, the bill mandates notification to legislative budget committee chairs.

The measure takes effect immediately as a budget bill under the California Constitution, with the augmented funding available for encumbrance through June 2026 and expenditure through June 2028.