In a move that has ignited debate on immigration policy and state benefits, California Governor Gavin Newsom vetoed a bill on Friday that would have expanded the state’s first-time homebuyer assistance program to include undocumented immigrants. The bill, 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 these loans.
Governor Newsom cited financial constraints as the primary reason for his veto, stating that “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.” This decision comes as California faces a projected $27.6 billion budget deficit for the 2024-2025 fiscal year, according to Newsweek.
The veto sparked immediate criticism from the bill’s author, Democratic Assemblyman Joaquin Arambula, who argued that the legislation was intended to clarify existing language in the California Dream for All program, not create new entitlements. Arambula emphasized that “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.” He expressed disappointment, stating that the bill aimed to create a more equitable housing landscape in California, especially considering the state’s ongoing housing crisis.
The timing of the veto is noteworthy, coming just days before a presidential debate and amidst rising rhetoric on immigration from Republican candidates. Notably, 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 advocated for removing immigration status as a barrier to various state benefits.
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 believe that undocumented immigrants, who contribute significantly to the state’s economy through taxes and hard work, deserve equal access to homeownership opportunities. “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.”
The veto highlights the ongoing national debate surrounding immigration policies and the role of state benefits for non-citizens. While California has long been considered a sanctuary state with a strong commitment to immigrant rights, this decision suggests a complex interplay between fiscal realities, political pressures, and social equity concerns in shaping state policy on immigration.
