Senate Passes Bill to Give Home Loan Down Payments to Illegal Immigrants

The Senate passed a bill 23-11 on Tuesday that would help pay for home down payments for illegal immigrants in California, with the newly passed bill going to Governor Gavin Newsom’s desk for either a final approval or veto.

Assembly Bill 1840, authored by Assemblyman Joaquin Arambula (D-Fresno), would expand eligibility of the California Dream for All program, to be renamed under the bill to the Home Purchase Assistance Program, and remove any disqualifications based on an applicants immigration status. If approved, illegal immigrants can enter the lottery system under the program that gives 20% in down payment assistance up to $150,000. This year, out of 18,000 people who applied to the California Dream for All program, only 1,700 were chosen. The bill would greatly expand the number of applicants, due to the California Dream program targeting low to middle income first time buyers.

In addition, not all illegal immigrants would qualify for the program. Under AB 1840, only those with taxpayer ID numbers or Social Security numbers could apply. According to the language of the bill “This bill would specify that an applicant who meets all other requirements for a loan under the program and who is otherwise eligible under applicable federal and state law, shall not be disqualified solely based on the applicant’s immigration status.”

Since being introduced earlier this year, AB 1840 has been one of the most highly debated bills of the year. Arambula has said that many in the state have been denied the program despite paying taxes, and that housing needs to be more accessible to everyone. Meanwhile, Republicans and moderate Democrats have said that the bill would increase costs, that there is no money left to fund such an expansion, and that the money would still be going to people who entered the country illegally and broke the law, even if they have a taxpayer ID number, potentially invalidating the law in court should it be signed. In addition, as the Globe noted on Monday, the bill’s sponsor, the Coalition for Humane Immigrant Rights, receives tens of millions a year in government grants, and barely make contributions to immigrants, simply wanting taxpayers to foot the bill instead.

Despite this, the bill remained divisive all year. This can be seen in the divisive 56-15 with 9 abstention Assembly vote in May and the bill briefly being placed in the suspense file earlier this month. And on Tuesday, the bill faced it’s closest challenge yet, passing the Senate 23-11 with 6 Democrats abstaining from voting. Had they joined Republican colleagues in voting no, it would have been a narrow 3 vote divide and barely getting over the needed 21 votes to pass.

However, opponents made their reasoning known, pointing out that the California Dream program ran out of money in it’s first 11 days this year and would need to approve more money for it in future budgets to keep it alive. This potentially makes the argument to include illegal immigrants moot as the state is tens of billions of dollars in debt, and new spending has virtually come to a standstill in Sacramento.

“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,” said California Senate Minority Leader Brian Jones (R-San Diego) on Tuesday. “California already spends $5 billion per year on free healthcare for illegal immigrants—will it ever be enough for Democrats’ political agendas?”

Down to Newsom

The big question has now become what Newsom will do. While there is some party pressure for him to sign, many have pointed out that Newsom signing could lead to disastrous consequences not only for his own political future, but even for the Presidential election this year. As the Globe pointed out on Monday, Newsom is currently in a tough spot on immigration through his support of Vice President Kamala Harris in the presidential election, as she supports a Biden proposal that would give $2,500 for down payments for first-time, first-generation home owners, with illegal immigrants being specifically excluded because of federal law. Newsom signing AB 1840 would suddenly put him at odds over both her and Donald Trump, with the latter’s campaign calling the bill “fundamentally unfair but typical Democrat policy.”

Also worrisome for Newsom is the political backlash. As he is entering a more moderate period and is staying away from more controversial bills to help elevate himself for a post-Governor political career, signing AB 1840 would create a divisive firestorm that would also likely bring on lawsuits over questions of the bill violating federal law.

“Newsom hasn’t given any indication that he will sign it, and right now, it can go either way,” explained “Dana”, a Capitol staffer, to the Globe on Tuesday. “Other Democrats want him to sign it, but at the same time, he has been very cautious to not approve bills that would greatly raise the budget in the last few years. Newsom can’t afford to leave the state in massive debt when he leaves office. And neither can he afford to be at odds with Biden and Harris over such a big issue. And if he signs it, it will be another headache with lawsuits over it breaking federal law.

“Newsom has an easy out with many bills that require additional funding by saying the state doesn’t have it right now, and he will be taking that on many bills. You’re right in saying that this will be a defining moment for Newsom. He’s going to alienate people either way, but there is only one way in which it also doesn’t cost the state even more money.”

Newsom is expected to make his decision on the bill soon.