Equating the U.S. government with the national government, historians of the AIDS epidemic have hitherto ignored the role of the states in shaping the early policy response to the disease. Responding to this historiographical lacuna, this article argues that California acted as a policy innovator during the initial years of the epidemic, intervening more effectively than the federal government in the areas of AIDS health care, antibody testing, and prevention education. California’s policy leadership drew significant impetus from a group of gay policy makers, who entered state employment in the early 1980s and relied extensively on clandestine and illicit strategies, particularly a network of “closeted” bureaucrats. Charting the career arcs of these gay policy makers shines a spotlight on the organizational growth of state LGBTQ groups in the 1980s and the evolving role of the “closet” in the modern gay rights movement.