A Democratic proposal that would have let illegal immigrants in California participate in the state’s first-time homebuyer assistance program has been vetoed by Governor Gavin Newsom.
With an estimated tens of billions of dollars in a budget deficit, the program is being analyzed closely in an effort to keep spending down.
“Carefully Considered”
According to Knewz, Newsom wrote, “This bill seeks to prohibit the disqualification of applicants from one of CalHFA’s home purchase assistance programs based solely on their immigration status.”
“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.”
Budget Changes
Newsom has changed the state budget to lessen one-time spending by $19.1 billion and ongoing spending by $13.7 billion through the 2025-26 fiscal year to combat the deficit.
“For this reason, I am unable to sign this bill,” he stated. Concerns regarding funding led Newsom to reject the legislation, which sought to provide state-backed homeownership loans or assistance with the down payment of up to $150,000.
“Such Good News!”
Newsom expressed that his decision was based on managing resources effectively within the confines of the state’s budget.
Brian Jones, the Republican minority leader in the senate, stated in response, “Such good news! Governor Newsom listened to our calls and rightfully VETOED the bill to give illegal immigrants free home loans.”
“Deeply Disappointed”
Jones contended that the bill was “insulting and unfair” for Californian residents.
The Democratic state representative who introduced the bill, Joaquin Arambula, stated, “I’m deeply disappointed that Governor Newsom today vetoed Assembly Bill 1840. The bill had won wide support in the Assembly and passed the Senate to get to his desk.”
“Clarify Language”
Arambula continued, “AB 1840 simply sought to clarify language in the existing California Dream for All program to make it clear that undocumented immigrants can apply.”
“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.”
Significant Backlash
Arambula stated, “As I’ve said before, the bill is not about immigrant policies or the housing crisis. No single bill can solve those issues.”
Critics of the bill, including conservative figures and California Senate Republicans, sparked significant backlash as they argued that it would unfairly prioritize illegal immigrants over veterans.
Democrat Frustration
While state conservatives lauded the veto, Democratic lawmakers communicated frustration, declaring that the bill intended to clarify qualification for the current program, not change immigration policies.
According to Arambula, the conditions of the program include, “securing a bank loan or mortgage. Successful applicants have to repay the loan, without interest, when they sell the home. In addition, 20 percent of the appreciation on that home’s value must be paid.”
“Slap in the Face”
In August the bill was approved by the California Assembly and the Senate where Democrats have supermajorities before Newsom killed the bill last week.
Jessica Millan Patterson, CAGOP chairwoman stated, “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 that are a complete slap in the face to the 86 percent of Californians who can’t afford to purchase a home in the state”
“They Should Have the Same Opportunities”
Arambula expressed his disappointment about the bill being killed, “The veto doesn’t change the fact that many people—including undocumented immigrants —dream of owning a home so that generational wealth can be passed to their children.”
“They are people who are responsible, work hard, and pay their ample share of taxes[…]They should have the same opportunities as anyone else to improve the quality of life for themselves and their families”
Trump’s Position
Newsom gave his decision on the bill only a day after Donald Trump said that he would issue a ban on illegal immigrants from receiving home mortgages if he was elected president.
Trump claims that the measure would help bring down home prices and combat the housing problems across the country.
California Data
The national debate over immigration policies continues to heat up as the presidential candidates field questions about how to handle the border crisis.
California has 1.8 million unauthorized immigrants, the largest population in the country according to data from the Pew Research Center as of 2022.
While this number has been declining in California it has been increasing in other states such as Texas.
