California Governor Gavin Newsom has rejected a bill that would have allowed undocumented immigrants to apply for the state’s homebuying assistance program. The vetoed bill, Assembly Bill 1840, was aimed at expanding access to the California Dream for All program.
Sponsored by Assemblymember Dr. Joaquin Arambula, a Democrat from Fresno, the bill sought to clarify that undocumented residents could apply for the program if they met its requirements. The California Dream for All program offers interest-free loans of up to $150,000 to assist first-time buyers with down payments and fees.
Arambula had previously explained that the bill aimed to make it clear that undocumented immigrants could apply for the program, provided they secured a bank loan or mortgage. Successful applicants would be required to repay the loan, without interest, upon selling the home, and pay 20% of the home’s appreciation.
Despite the bill’s approval by the California Assembly and Senate, Newsom vetoed it upon receiving it. The governor stated that there are not enough funds to support an increased number of applicants. In his veto message, Newsom cited the state’s budget constraints and the need to manage resources effectively.
California faces a $27.6 billion budget deficit for the 2024-2025 fiscal year. Critics, including the California GOP, have condemned the bill’s proposal amid the state’s financial troubles. Jessica Millan Patterson, chairwoman of the California GOP, argued that Democrats are focusing on extreme housing policies instead of addressing pressing issues like crime, homelessness, and education.
Arambula expressed disappointment over Newsom’s decision. He emphasized that the bill was intended to ensure fairness and not to address broader immigration or housing issues. “Many people, including undocumented immigrants, aspire to own homes and build generational wealth,” Arambula said. “They deserve the same opportunities as anyone else to improve their lives.”
Newsom’s decision came shortly after former President Donald Trump announced his intention to ban illegal immigrants from obtaining home mortgages if elected again, a proposal he claims would lower home prices.