August 20, 2025 | SIBTF.org — On August 20, 2025, the Senate Appropriations Committee moved AB 1329 and other SIBTF reform bills into its “suspense file,” delaying further action until after the committee reviews potential financial impacts.
AB 1329 is one of the most closely watched proposals this year, as it seeks to narrow eligibility requirements, demand stronger medical evidence, and shift administrative authority to the Division of Industrial Relations (DIR). Supporters of the bill argue these reforms are critical to ensuring that the Subsequent Injuries Benefits Trust Fund (SIBTF) remains financially viable.
By placing the bill in suspense, the committee effectively postponed progress until at least later in the session, creating continued uncertainty for employers, insurers, and injured workers who are closely tracking SIBTF reform developments.
The Senate Appropriations Committee SIBTF reform delay has far-reaching consequences:
- Escalating Liabilities – The SIBTF is already burdened with liabilities exceeding $20 billion, with projections warning that debt could surpass $26 billion in the near future. Delaying reform only compounds this financial strain.
- Employer Uncertainty – Since the fund is financed through employer premiums, California businesses face rising costs without clarity on when or how relief may come.
- Worker Concerns – While some injured workers continue to benefit from broader eligibility standards, delays in reform raise questions about the fund’s long-term sustainability and whether future benefits can be secured.
- Political Challenges – The suspense file decision highlights the difficulty lawmakers face when balancing worker protections against California’s budget realities.
What the Delay Signals for AB 1329
AB 1329 was introduced as a cornerstone reform measure in 2025, but the Senate Appropriations Committee SIBTF reform delay indicates that political and fiscal obstacles remain high. The bill could still move forward during this session, but experts suggest that meaningful reform may be postponed until at least 2026, especially given California’s tight budget cycle.
Employers, insurers, and advocacy groups are closely watching whether the Legislature will act decisively or continue to push difficult reforms down the road. For now, the suspense file action suggests that California’s SIBTF crisis will remain unresolved in the near term.
Why Reform Is Urgent
The SIBTF was originally designed to protect workers with pre-existing disabilities who suffer additional work-related injuries, but the program has expanded far beyond its initial scope. Eligibility standards have loosened, payouts have grown significantly, and annual claims have more than tripled since 2015.
With billions in liabilities accumulating each year, policymakers face mounting pressure from business groups, state analysts, and taxpayer advocates who argue that the fund is no longer aligned with its original legislative intent. The delay in reform only intensifies debate about who should bear the cost of keeping the SIBTF afloat.
The Senate Appropriations Committee SIBTF reform delay shows that California’s benefit system is at a crossroads, with major financial and policy implications ahead.
Employers, insurers, and injured workers need to stay alert to the next legislative moves. Read the full coverage available at WorkCompCentral.
For the latest updates on SIBTF legislation, benefit changes, and compliance resources, visit SIBTF.org and subscribe to our newsletter.
Read More from SIBTF.org:
- CalChamber Reports Surge in SIBTF Claims & Payouts in 2025
- SIBTF Debt Crisis Surges to $26 Billion and Rising
- WCAB Rulings Shape Future SIBTF Claim Outcomes
FAQs: Senate Appropriations Committee SIBTF Reform Delay
What does it mean when AB 1329 is in the “suspense file”?
When a bill is placed in the suspense file, it is held for fiscal review due to potential costs to the state. It may advance later in the session, but placement signals budgetary concerns.
How does the Senate Appropriations Committee delay impact SIBTF claims?
The delay means current SIBTF claim rules remain unchanged. Injured workers can still apply under existing eligibility standards, but the long-term future of the fund remains uncertain.
Why is AB 1329 considered critical to SIBTF reform?
AB 1329 is central because it proposes tighter eligibility requirements, stronger medical documentation, and administrative restructuring—all aimed at reducing liabilities and ensuring fund sustainability.
What is SIBTF?
The Subsequent Injuries Benefits Trust Fund (SIBTF) helps California workers who suffer a new workplace injury and already had a prior disability. It offers supplemental compensation when combined impairments severely limit earning capacity.