DOJ seeks funding to defend state actions against federal rollbacks as staff warn limited‑term attorney funding complicates recruitment

The Department of Justice presented its May Revision requests to the Senate Budget Subcommittee No. 5, asking for resources to respond to increased federal litigation and to continue technology and program workload projects. The department described recent litigation to protect federal funds and programmatic priorities and asked the Legislature to consider multi‑year or ongoing resources to meet the workload.

Why it matters: DOJ litigation and counsel work protect multi‑hundred‑million‑dollar federal funding streams and statewide programs. The department asked for additional attorneys and staff to coordinate that workload. LAO cautioned about the cost of ongoing general fund commitments and recommended limited‑term resources or detailed reporting where appropriate.

DOJ requests and LAO recommendations Mark Jimenez of the Department of Finance reviewed DOJ's May Revision items, including $14.4 million (of which the administration characterized $13 million general fund ongoing) and 44 positions to handle federal accountability workload and defend state programs, plus technology investments to connect CLETS to DMV systems and to continue DOJ's accounting transition. The LAO noted some federal‑workload funding had been provided in special session appropriations and recommended the Legislature consider the duration and scope before committing ongoing general fund support; the LAO recommended limited‑term resources where appropriate and consistent reporting on spending and outcomes.

DOJ litigation activity described Christina Bull Arnn, chief counsel for special litigation at DOJ, described the department's recent federal workload. She said DOJ had filed 22 lawsuits in roughly four months to protect federal funding and other state interests, and cited examples of cases that preserved federal funds for California programs (including public health, education and transportation grants) by obtaining preliminary injunctions. Bull Arnn said those actions are designed to protect hundreds of millions and in some categories billions of dollars of federal funding that benefit California.

Funding sources and the litigation deposit/unfair competition funds The administration also proposed a $150 million budgetary loan from the Unfair Competition Law Fund to help the state's fiscal picture in the budget year. DOJ and Finance staff explained that settlement proceeds first land in the litigation deposit fund and are later transferred to specific special funds (including the Unfair Competition Law Fund) depending on the case; a committee member asked for updated balances and detail on prior borrowing. Finance staff said earlier statutory changes now provide more legislative oversight of litigation funds and that recent loans had reduced some fund balances.

Operational issues and staff recruitment DOJ staff cautioned that providing only limited‑term resources for attorney positions complicates recruitment and retention because DOJ salaries are generally lower than the private sector and short‑term assignments make hiring more difficult. LAO recommended any federal accountability funding be limited‑term at first, with reporting requirements mirroring prior special‑session reporting to preserve oversight.

Next steps LAO and DOJ staff agreed to work with the committee on reporting language and duration of funding for the federal accountability workload. Members asked for additional detail on outstanding lawsuits and on fund balances related to litigation proceeds and previously authorized loans. The hearing was informational and no votes were taken.