November 14, 2025 | SIBTF.org — SIBTF Reform: California Gov. Gavin Newsom has called for a comprehensive overhaul of the Subsequent Injuries Benefits Trust Fund (SIBTF) after vetoing a bill that sought to revise eligibility criteria for the long-troubled program. The governor highlighted that employer assessments for SIBTF are projected to reach $1.5 billion within five years, while injured workers may wait up to a decade to receive benefits due to administrative delays.
“This situation is dire, and the state must act immediately,” Gov. Newsom stated in his veto message for A.B. 1329. He emphasized that while the proposed bill included some positive changes, it failed to provide the comprehensive reforms needed to stabilize the program.
Delays and Eligibility Issues Plague the Subsequent Injuries Benefits Trust Fund
The vetoed bill would have required workers to provide substantial evidence of a prior permanent partial disability affecting earnings or daily activities and would have excluded conditions like sleep apnea, diabetes, and acid reflux from consideration as preexisting injuries. Additionally, claimants would have been subject to tight filing deadlines and standard medical-legal processes.
Gov. Newsom noted that some proposed changes could inadvertently increase SIBTF liabilities rather than reduce them. He stressed that future reforms should preserve the program’s intent to cover labor-disabling prior injuries without expanding unnecessary costs.
What’s Next for the SIBTF Reform
The governor has directed the California Division of Workers’ Compensation (DWC) to draft an SIBTF reform plan to be included in the 2026 state budget. Stakeholders, including employers, insurers, and injured workers, will closely watch the DWC’s recommendations for changes designed to modernize SIBTF and reduce administrative backlogs.
The forthcoming SIBTF reform is expected to address key issues such as eligibility verification, claims processing timelines, and cost containment measures. Employers and insurers will be particularly attentive to how assessment formulas and funding allocations may change, while injured workers will focus on improvements to accessibility and timeliness of benefit disbursements.
Experts predict that the reform could introduce updated reporting standards, streamlined medical-legal evaluations, and more transparent communication protocols between claimants, employers, and the state fund. By implementing these measures, the SIBTF reform aims to balance the needs of injured workers with fiscal responsibility, ultimately creating a more efficient and equitable system.
Active participation and feedback from stakeholders during the reform drafting process will be essential. Public hearings, advisory committee input, and collaboration with labor and employer groups are likely to shape the final recommendations, ensuring that the SIBTF reform is comprehensive and responsive to both economic and worker-focused considerations.
For more details on California’s Subsequent Injuries Benefits Trust Fund and ongoing reforms, visit WorkCompCentral.
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Read More from SIBTF.org:
- SIBTF Reform 2026: Newsom Urges Comprehensive Overhaul
- SIBTF Outlook 2026: Backlogs, Budget Strain, and Reform Ahead
- Top 5 Reasons SIBTF Claims Are Denied: Understanding Why Many Eligible Workers Miss Out on SIBTF Benefits
FAQs: About SIBTF
What is the Subsequent Injuries Benefits Trust Fund (SIBTF)?
SIBTF is a state-managed fund that provides benefits to workers who suffer a second work-related injury that is worsened by a prior permanent disability.
Why did Governor Newsom veto A.B. 1329?
Newsom vetoed the bill because it did not include the broad reforms necessary to reduce costs and improve the timely processing of SIBTF claims.
How long might injured workers wait for SIBTF benefits?
Currently, claimants can wait up to 10 years to receive benefits due to administrative delays.
What are the next steps for SIBTF reform?
The California Division of Workers’ Compensation is tasked with creating a comprehensive reform plan for inclusion in the 2026 state budget.