Compiled from Signal news services and staff reports
Gov. Gavin Newsom, citing budget concerns, announced on Friday that he vetoed Assembly Bill 1840, which would expand homebuyer aid to illegal immigrants.
“Given the finite funding available for (California Housing Finance Agency) programs, expanding program eligibility must be carefully considered within the broader context of the annual state budget to ensure we manage our resources effectively,” the governor wrote in his veto message.
AB 1840, written by Assemblyman Joaquin Arambula, D-Fresno, aimed to ensure potential home buyers are not excluded from assistance programs due to their immigration status.
The bill would allow undocumented first-time homebuyers to apply for a program that offers 20% downpayment assistance of as much as $150,000 — sufficient for a down payment on a $750,000 home.
The bill has drawn national media attention, with Republicans contending that it follows “a long litany of taxpayer dollar giveaways … that encourage and reward illegal immigration.”
A spokesperson for Arambula said the bill only clarifies that undocumented Californians can participate in “Dream for All” and other home purchase assistance programs if they meet all other eligibility and financial criteria.
The program ran out of $300 million in funding 11 days after launching in 2023. Because of the state budget shortfall, no new funds were appropriated this year.
According to a June statement from Newsom’s office, 1,700 Californians received grants from the program out of 18,000 people who applied this year. Eligible applicants are put into a randomized draw by the Housing Finance Agency. The bill would add illegal immigrants into the pool of potential applicants along with citizens and legal immigrants.
Some argue that because undocumented immigrants pay taxes, they should also have access to taxpayer-funded programs.
According to USC’s California Immigrant Data Portal, undocumented immigrants paid an estimated $3.7 billion in state and local taxes in 2019. A 2023 analysis by the Federation for American Immigration Reform contended that California taxpayers’ cost of providing services to illegal immigrants and their children exceeded $30 billion annually as of 2022.
AB 1840 has been supported by a large coalition of immigrant rights advocates, including the ACLU, CHIRLA, the Coalition for Humane Immigrant Rights, and the Mexican American Opportunity Foundation.
In introducing the measure, Arambula said that the “social and economic benefits of homeownership should be available to everyone.” He said there had been a “lack of clarity” about whether individuals without immigration status can qualify for the down payment assistance program.
“Homeownership is a fundamental tool for wealth building, as it fosters financial stability and provides a tangible investment in one’s future. When undocumented individuals are excluded from such programs, they miss out on a crucial method of securing financial security and personal stability for themselves and their families,” he said.
The assemblyman further argued that limiting access to the homeownership assistance program “perpetuates inequality” while expanding access can help foster economic stability in the state.
“Ensuring universal access by all qualified borrowers to the California Dream for All Program will contribute to the overall success and vitality of California,” Arambula said.
Opponents have said that the measure — which comes at a time when California is struggling with a multibillion-dollar deficit, and budget cuts to numerous housing and homelessness programs — could further worsen the situation.
California Republicans argue that programs providing aid to undocumented residents act as a magnet for illegal immigration, even as many Californians can’t afford to buy houses. Elon Musk posted on his social media site X that “half of Earth should move to California given all the incentives to do so.”
“Many second, third, and fourth generation Californians can’t afford to buy a house in their home state thanks to record unaffordability under Democrat rule,” California Senate Minority Leader Brian Jones, R-San Diego, said in a late-August statement after the bill cleared the Legislature.
Jones added: “With many legal residents not able to afford a home, should we really be giving free cash to illegal immigrants? Every dollar that goes to an illegal immigrant is one less dollar available to legal residents including veterans, teachers and families.”
