10/13/2025
California’s Radical Reparations Plan Kicks Off: Who’s Paying and Who’s Getting the Cash?
SACRAMENTO, CA – In a move critics are calling a fiscal disaster, California Governor Gavin Newsom (D) signed a controversial bill into law on Friday, October 10, 2025, launching the state’s latest push for slavery reparations. Senate Bill 518 establishes the California African American Freedmen's Affairs Agency (CAAAFA), a new state bureaucracy tasked with doling out reparations to eligible Black residents—without a clear plan to foot the massive bill.
The agency, modeled after the post-Civil War Freedmen's Bureau, aims to address historical injustices tied to slavery and discrimination. But don’t expect checks in the mail just yet. The law sets up a framework, leaving the real work—funding and payouts—to future lawmakers. Estimates from the 2023 Reparations Task Force suggest costs could soar into the hundreds of billions, potentially up to $1.2 million per eligible person, though no firm figures are set.
# # # # Who’s Stuck Paying the Tab?
California taxpayers could be on the hook, with the state’s general fund likely tapped to bankroll this ambitious scheme. The Legislature will need to approve every dollar, and with the state grappling with budget deficits, some are already sounding the alarm. The CAAAFA can also chase federal grants, private donations, or even penalties from corporations with historical ties to slavery—like banks or insurers. But with no new taxes proposed, the burden may fall squarely on hardworking Californians already squeezed by high costs.
# # # # Who’s Cashing In?
Only African American descendants of enslaved people in the U.S. or free Black individuals pre-1900 qualify—roughly 1.8 to 2 million residents, per 2020 census data. Recent Black immigrants? Left out in the cold. Eligibility will hinge on genealogical proof, DNA tests, or historical records, managed by a special agency branch. Payouts—whether cash, housing grants, or tuition forgiveness—will flow through a claims process, with an option for extra compensation for proven harms like redlining.
# # # # A Recipe for Chaos?
The CAAAFA won’t start paying out until 2026 at the earliest, after it’s fully operational and lawmakers greenlight specific programs. Critics, including some Republican lawmakers, slam the move as a “reckless giveaway” with no clear funding plan, while supporters hail it as a historic step toward justice. With privacy concerns over genetic data and the state’s shaky finances, this could be a political powder keg.
Stay tuned as the battle over California’s reparations unfolds. For the latest, keep an eye on the California Department of Justice’s AB 3121 page.
