California governor rejects bill that would allow immigrants without legal status to qualify for home loans

California Governor Gavin Newsom rejected a bill on Friday that aimed to allow immigrants without legal status to qualify for loans in a state program assisting first-time homebuyers. The proposal faced opposition from Republicans, who argued that state housing assistance should prioritize legal residents in California, known for its high housing costs. Supporters believed the bill would enhance the lives of hard-working families, regardless of their immigration status.

Governor Newsom, a Democrat with potential presidential aspirations, cited limited funding for state housing programs as the reason for vetoing the bill. He emphasized the need to carefully consider expanding program eligibility within the context of the state budget to ensure efficient resource management. This bill was part of a series of efforts by state lawmakers to expand services for immigrants living in the country illegally, including recent legislation seeking cash assistance for unemployed residents ineligible for unemployment benefits due to their immigration status.

Over 700,000 low-income immigrants without legal status gained access to free healthcare under the state’s Medicaid program earlier this year, following an agreement between Newsom and lawmakers to extend coverage to all adults regardless of immigration status in 2022. Republican Senator Brian Dahle, Newsom’s gubernatorial opponent in 2022, praised the veto, expressing concerns about fairness to long-time legal Californian residents facing financial struggles.

Newsom announced that no funding was allocated for the California Dream for All Program, offering loans to first-generation homebuyers, in the budget signed in June. While $500 million was earmarked for the program in the 2022 budget, only $20 million was allocated in the 2023 budget. Since 2023, nearly 4,000 families have received home loans under this program, providing up to 20% or a maximum of $150,000 for down payments or closing costs on homes, managed by the California Housing Finance Agency.

The governor declined to speculate on his decision if more funding had been available, asserting that the bill aimed to expand eligibility for a program without existing funds, deeming it unnecessary. Assemblymember Joaquin Arambula, a bill author, expressed disappointment with Newsom’s veto, highlighting the aspirations of undocumented immigrants to own homes and pass down generational wealth. Arambula emphasized the contributions of responsible, hardworking individuals paying taxes, bolstering the state’s economy and fostering economic growth.

State lawmakers presented over 950 bills to Newsom last month, and he has until September 30 to determine which ones to approve into law. The rejected bill targeting home loan assistance for immigrants without legal status reflects ongoing debates in California over resource allocation and support for different communities.