Rep. Nancy Pelosi, Dem Allies Make Rare Appeal To Newsom to Sign Controversial Bill

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.

Opponents of the bill, including GOP and moderate Democrat lawmakers, quickly urged Newsom to veto the bill. The number grew quickly throughout the week, with Senate Republicans even sending the Governor a letter urging him not to sign the bill. Some Democrats on the more national scope have also urged him not to sign, as Vice President Kamala Harris 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.”

Fearful that Newsom may actually now veto the law, close Newsom allies did something they rarely have done in the past and urged the Governor to sign the bill. This included longtime ally Congresswoman Nancy Pelosi (D-CA) who on Friday urged Newsom to sign the bill while on “Real Time With Bill Maher.”

Pelosi on the bill

“What I would like to do is move them to documented. One of the best things we can do for our economy is pass comprehensive immigration reform. Well, let me just say, immigration had always been a bipartisan issue.

“[It’s not] free housing. It’s the American Dream being available to more people. But understand this about immigration. The best speech when immigration was by President Ronald Reagan. ‘This is the last speech I will make as President of the United States. I want to communicate a message to the country I love.’ And he talked about the Statue of Liberty and the Beacon of Hope it is to the world and what America was preeminent to the world because our door was always open. And we will cease to be preeminent when we shut the door.

“Now, I don’t do justice to the Great Communicator. Google it. It’s a fabulous speech, and George Herbert Walker Bush continued in that respect for the diversity of America and the rest. California is always in the lead. Maybe others will follow that lead, but that’s up to those states. But we are very blessed here with beautiful diversity.

“Making the American dream of homeownership available to all people is something we have to do for people who are here now.”

Despite Pelosi and other allies coming out in favor of the bill, Newsom has yet to signal which way he will go on the bill, as there are many factors to consider. This includes the high cost of the bill if it is made law, national election implications, and hurting legal citizens in California who also want to own homes.

“You guys said it when you pointed out how this is promoting undocumented immigrants over California citizens,” explained “Dana,” a Capitol staffer, to the Globe on Saturday. “You know , Pelosi and others are trying to get him to sign this, but it is smacking of desperation now. Close allies usually don’t have to publicly try and get them to pass laws. This is showing that Newsom is seriously considering a veto.

“As we’ve seen all week, a lot of Californians are against this. We’ve had people sending e-mails and texts and messages on social media from all races, all walks of life saying how they don’t like this bill. The cost alone turned a lot of people away. But a lot of younger people, Millennials and Gen Z, who have had to wait to buy houses until later because of the Great Recession and COVID, are making a surprise stand against this bill, as they dream of home ownership too. Why should they be denied help for undocumented immigrants?

“Oh, and it going against federal law is a big hang up too. And don’t get me started on Newsom, if he signs it, being at odds with the Biden/Harris administration. The Globe hit all the points.

“From the urgency of Pelosi and others, it looks like Newsom isn’t going to be blindly signing this.”

Governor Newsom is expected to make his decision on the bill by September 30th.