California governor vetoes bill to expand home-loan program to undocumented people

SACRAMENTO, Calif. (CN) — California Governor Gavin Newsom on Friday vetoed a controversial bill that would have opened a state homebuyer loan program to undocumented immigrants.

Assembly Bill 1840 — written by Assemblymember Joaquin Arambula, a Fresno Democrat — drew sharp ire from Republicans in both chambers. Under the bill, potential homebuyers couldn’t be disqualified from the California Housing Finance Agency program over their immigration status.

Last week, the bill passed the state Senate 23 to 11 and the Assembly 53 to 18. But Republicans overwhelmingly opposed it, as did a few Democrats.

In a bill analysis, the state Senate Appropriations Committee said that under AB 1840, California could have faced millions in new costs each year in order to properly fund the housing program. The exact cost was unknown.

Newsom, who has until Sept. 30 to sign or veto bills, pointed to the state’s finances as the reason for his Friday veto.

“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,” Newsom said in a statement. “For this reason, I am unable to sign this bill.”

That veto was met with praise from Republicans in the Golden State.

“The Democrats’ legislation to give illegal immigrants access to taxpayer-funded down payments for homes (up to $150,000!) has been vetoed,” Assemblymember and Minority Leader James Gallagher of Yuba City posted on X. “Why? Because the media, the public and [Assembly Republicans] exposed this crazy idea.”

State Senator and Minority Leader Brian Jones of San Diego also praised the veto on social media.

“Good news!” Jones wrote. “Governor Newsom listened to our calls and rightfully vetoed the bill to give illegal immigrants free home loans. Thank you, Californians, for speaking out against this insulting and unfair bill.”

State Senator Kelly Seyarto, a Murrieta Republican, said in a statement to Courthouse News that expanding programs during a deficit isn’t good policy.

“We cannot afford this type of reckless spending," Seyarto said. “I am grateful that the concerns of the people were heard and common sense prevailed.”

Seyarto made that argument last week on the Senate floor when debating the bill. Republicans also invoked California’s veterans and homeless population, saying people who were here legally should receive help first.

State Senator Rosilicie Ochoa Bogh, a Yucaipa Republican, said the bill disrespected immigrants who’d come to California legally.

Once the bill reached the state Assembly, Republicans there made similar arguments.

“Does it mean nothing to be a citizen?” Assemblymember Bill Essayli, a Corona Republican, asked his fellow lawmakers. “I hope the people of this state are watching.”

Many Democrats pushed back on these arguments. State Senator Scott Wiener, a San Francisco Democrat who helped carry the bill, described the debate as a collision between California housing policy and Fox News’ anti-immigrant messaging. Undocumented people should have the ability to access the state program, he said.

State Senator Josh Newman, a Fullerton Democrat, argued the bill merely clarified existing law, removing confusion over who was eligible.

In the Assembly, many Democrats likewise pushed for the bill’s passage. Bill author Arambula stressed to colleagues that America is a nation of immigrants.

“This is a bill about fairness,” he said.

Assemblymember Corey Jackson, a Moreno Valley Democrat, said people can be affirmed or demeaned. Placing limits on immigrants hurts the state’s economic vitality, he argued.

After the bill failed, Assemblymember Alex Lee, a San Jose Democrat, lamented Newsom’s veto.

“The California Dream for All loan program should be for all residents,” he wrote on X. “It’s not a free house, it’s still a stringent loan program. Next session we need to work on resourcing this program more so more residents can buy their forever home in [California].”