Newsom Rejects Bill To Aid Migrants With Home Loans–Here's Why

Extinguishing a potential flashpoint in the presidential election, California Gov. Gavin Newsom vetoed a bill on Friday that would have expanded the state’s first-time homebuyer assistance program to include undocumented immigrants.

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The decision comes amid a heightened national debate over immigration policies and state benefits for non-citizens.

The proposed legislation, Assembly Bill 1840, sought to broaden eligibility for the California Dream for All program, which offers down payment assistance of up to $150,000 for first-time homebuyers. According to the New York Times, the bill would have allowed undocumented immigrants with Social Security or taxpayer-identification numbers to apply for the loans.

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Gov. Newsom cited financial constraints in his veto message. “Given the finite funding available for CalHFA programs, expanding program eligibility must be carefully considered within the broader context of the annual state budget to ensure we manage our resources effectively,” Newsom wrote.

The decision comes as California faces a projected $27.6 billion budget deficit for the 2024-2025 fiscal year, according to figures cited by Newsweek. The state’s fiscal challenges appear to have influenced the governor’s decision-making process.

The bill’s author, Democratic Assemblyman Joaquin Arambula, expressed deep disappointment with the veto. In a statement to Newsweek, Arambula said that the legislation was intended to clarify existing language in the California Dream for All program, rather than create new entitlements. “The fact is, right now, anyone can apply who is a first-time homebuyer who can meet the program’s financial requirements that include securing a bank loan or mortgage,” Arambula stated.

The veto comes against a backdrop of intensifying national debate over immigration policies. According to the New York Times, California still has the largest population of unauthorized immigrants in the nation, with 1.8 million as of 2022, based on data from the Pew Research Center.

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However, the number has been declining in California while increasing in other states like Texas.

The bill had become a lightning rod for criticism from Republicans, who argued that state assistance for home buying should prioritize legal residents.

The California GOP criticized the Democratic-led legislature for pursuing such policies amid other pressing state issues. Jessica Millan Patterson, chairwoman of the California GOP, told Newsweek, “California suffers from rampant crime, a homeless crisis, failing public education and a massive budget deficit, but instead of tackling those issues, California Democrats are passing extreme housing policies.”

The timing of the veto is notable, coming just days before a presidential debate and amidst increasing rhetoric on immigration from Republican candidates. Former President Donald Trump had recently vowed to bar undocumented immigrants from obtaining mortgages if re-elected, a move he claimed would help lower home prices.

While home loans to undocumented individuals are legal but rare in the U.S., California Democrats have consistently sought to remove immigration status as a barrier to various state benefits.

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According to the New York Times, the efforts have included extending health insurance, financial aid for college, and campus jobs at state-funded universities to undocumented residents.

Proponents of the vetoed bill, including Assemblyman Arambula, argued that the legislation was not about immigration but fairness in the face of California’s ongoing housing crisis. “They are people who are responsible, work hard, and pay their ample share of taxes,” Arambula said of undocumented immigrants in California.

“They should have the same opportunities as anyone else to improve the quality of life for themselves and their families.”

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