Growing Number Of Lawmakers Urge Gov. Newsom To Veto Bill Illegal Immigrant Home Loan Down Payment Bill

A growing number of lawmakers have come out urging Governor Gavin Newsom veto a recently Assembly passed bill that would help pay for home down payments for illegal immigrants in California, with Senate Republicans formally sending a veto request on Wednesday.

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.”

Following introduction earlier this year, AB 1840 quickly became one of the most divisive bills of the session. Arambula and many Democrats have said that many undocumented immigrants have Taxpayer ID numbers and are thus eligible, as well as wanting to make housing more equal. However, the GOP and moderate Democrats fired back that the program expansion would be way too expensive amidst the state budget being massively in debt, as well as the bill breaking federal law. 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 it was seen again on Tuesday, with the bill narrowly passing the Senate 23-11 with 6 Democrats abstaining from voting.

All eyes on Newsom

All eyes are now on Governor Newsom, who faces one of his biggest bill decisions of the year. Pressure has been mounting from both sides.  He 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 $25,000 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.” In addition, Newsom has been more cautious in recent years on spending with the state massively on debt, vetoing most legislation that has a high price tag on it, leading to another possible derailing reason for the bill.

Less than 24 hours after being passed by the Assembly, opponents of the bill have flooded Newsom’s office with veto requests. This included Senate Republicans, who issued a veto request letter on Wednesday urging Newsom to veto AB 1840. In addition to all previous arguments, GOP lawmakers specifically pointed out how every home-buying age generation, from Gen Z to the baby boomers, are having a hard time buying houses in California, with the bill likely to worsen the situation even more.

“It is wrong to prioritize illegal immigrants over the men and women who have made great sacrifices to serve our country,” said Senator Brian Dahle (R-Bieber). “California is already struggling with a massive deficit, this policy priority by Democrat politicians is yet the latest slap in the face to the citizens who are working to make ends meet and forced to foot the bill of ever-expanding government programs in the state under one-party rule.”

Senate Minority Leader Brian W. Jones (R-San Diego) added in the letter that “Many generational Californians can’t afford to buy a house in their home state thanks to Democrats’ unsustainable economic policies. Every dollar given to an illegal immigrant is a dollar taken away from legal residents, including veterans and their families. This policy is not only unfair but also sends a dangerous message: ‘Come to California, whether legally or illegally, and claim your $150,000 home loan.’ Americans should be deeply concerned about a Harris-Waltz Administration adopting this policy on a national scale.”

While Newsom has not hinted at which way he will go on the issue, many in Sacramento have said that it can still go either way.

“There is definitely a big push now for him to veto,” explained “Dana”, a Capitol staffer, to the Globe on Wednesday. “Just in the past day, it seems like every opponent to this bill has been urging him to veto it. And there are so many reasons. It’s not affordable. It breaks federal law. It ignores most legal Californians. It hurts generations like Gen Z and Millennials who cannot afford houses as much. It hurts veterans. It will put him at odds with Biden and Harris. The list goes on.

“It’s also symbolic. You know, pass this, and it could lead to undocumented immigrants getting more state funds for things down the line. There is a lot riding on this.”

Governor Newsom is expected to make his decision on the bill by the end of September.