Democratic California Gov. Gavin Newsom recently vetoed a bill that would allow undocumented immigrants to apply for state-backed home loans.
Earlier this year, Assemblymember Joaquin Arambula introduced AB 1840, a bill that aimed to expand the eligibility for housing loans under the California Dream For All Shared Appreciation program. If the measure was signed into law, it would have offered up to $150,000 in down payment assistance to eligible first-time buyers, regardless of their immigration status.
However, Newsom vetoed the bill. In a letter addressed to the California State Assembly, Newsom argued that the bill would have blocked the disqualification of loan applicants for reasons based on their immigration status.
The governor also argued that there was "finite funding" available, adding that expanding the eligibility "must be carefully considered."
"For this reason, I am unable to sign this bill," he wrote.
Why Was AB 1840 Proposed?
Arambula previously said the measure aimed to help address the state's housing crisis. Fellow Democratic lawmakers in the state also said the measure was also designed to give immigrants the same benefits afforded to other residents in the state.
On the other hand, Republicans said the state should instead focus on providing housing assistance for families living in the country legally.
A recent PPIC survey found that 68% of California residents expressed concern about housing affordability in the state. That survey also found that over 50% of renters and 40% of homeowners in California were spending more than 30% of their income on housing costs.
As of July, the median home sale price in California was $836,100, per data from Redfin.
Other Proposals for Undocumented Immigrants
Apart from the down payment assistance, there are other proposals in California aimed at expanding the benefits and services afforded to immigrants without legal status. One measure would have required the state's Employment Development Department to create a plan by the end of March 2025 to provide cash assistance for unemployed residents who were disqualified for unemployment insurance benefits due to their immigration status.
Another bill passed in 2022 expanded access to free health care under the state's Medicaid program, which made over 700,000 low-income immigrants living in the country illegally to get medical care.
