The Senate on Tuesday passed a bill to make it easier for illegal immigrants in California to get a down payment. The newly passed bill now goes to Governor Gavin Newsom for final approval or veto.
California Assembly Bill 1840, authored by Assemblyman Joaquin Arambula (D-Fresno), would expand eligibility for the California Dream for All program, which the bill calls for to be renamed the Home Purchase Assistance Program, and eliminate any disqualifications based on an applicant’s immigration status. If approved, the program would allow illegal immigrants to participate in the lottery system that provides 20% of the down payment up to $150,000. This year, of 18,000 people who applied for the California Dream for All program, only 1,700 were selected. The bill would significantly increase the number of applicants because the California Dream program targets low- to moderate-income first-time homebuyers.
Additionally, not all illegal immigrants would be eligible for the program. Under AB 1840, only those who have a tax ID or social security number could apply. According to the bill’s language, “this bill would provide 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 on the basis of his or her immigration status.”
Since its introduction earlier this year, AB 1840 has been one of the most hotly debated bills of the year. Arambula said many of the state’s residents were denied the program despite paying taxes and that housing needs to be more accessible to all. Meanwhile, Republicans and moderate Democrats said the bill would increase costs, that there would be no money left to fund such an expansion and that the money would continue to go to people who came to the country illegally and broke the law even if they had a tax ID number, potentially invalidating the bill in court should it be signed. Moreover, as the Globe noted Monday, the bill’s sponsor, the Coalition for Humane Immigrant Rights, receives tens of millions in federal grants annually and makes few contributions to immigrants, instead simply wanting taxpayers to foot the bill.
Still, the bill has been a source of controversy throughout the year, as evidenced by the controversial House vote in May of 56 to 15 with nine abstentions, and the bill’s brief shelving earlier this month. And on Tuesday, the bill faced its toughest challenge yet, passing the Senate by a vote of 23 to 11 with six abstentions. Had they joined their Republican colleagues in voting no, it would have been a narrow 3-vote difference, barely surpassing the 21 votes needed to pass.
But opponents made their case clear, pointing out that the California Dream program ran out of money in the first 11 days of this year and that more money would need to be appropriated in future budgets to keep it afloat. This potentially makes the argument for including illegal immigrants moot, given that the state is tens of billions of dollars in debt and new spending in Sacramento has virtually ground to a halt.
“Should we really be giving free money to illegal immigrants when many legal residents can’t afford to own a home? Every dollar that goes to an illegal immigrant is one dollar less for legal residents, including veterans, teachers and families,” California Senate Minority Leader Brian Jones (R-San Diego) said Tuesday. “California already spends $5 billion a year on free health care for illegal immigrants – will that ever be enough for Democrats’ political agendas?”
Down to Newsom
The big question now is what Newsom will do. While there is some pressure from the party to get him to sign, many have pointed out that Newsom’s signature could have 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 difficult position on immigration, as he is supporting Vice President Kamala Harris in the presidential election, who is backing a Biden proposal that would give first-generation homebuyers $2,500 for down payments, while illegal immigrants are specifically exempt under federal law. If Newsom signs AB 1840, he will suddenly find himself at odds with both her and Donald Trump, whose campaign has called the bill “fundamentally unfair but typical Democratic policy.”
Also of concern for Newsom is the political backlash. As he enters a more moderate phase and steers clear of more controversial bills to profile himself for a post-gubernatorial political career, signing AB 1840 would set off a divisive firestorm that would also likely draw lawsuits over whether the bill violates federal law.
“Newsom has given no indication he will sign it, and right now it can go either way,” “Dana,” a Capitol staffer, told the Globe on Tuesday. “Other Democrats want him to sign it, but at the same time he has been very cautious over the last few years not to approve legislation that would greatly increase the budget. Newsom cannot afford to leave the state with massive debt when he leaves office. And he also cannot afford to be at loggerheads with Biden and Harris over such a big issue. And if he signs it, there will be more problems with lawsuits alleging violation of federal law.
“On many bills that require additional funding, Newsom has an easy way out by saying the state doesn’t have it right now, and he will do that on many bills. You’re right to say this is going to be a defining moment for Newsom. He’s going to piss people off either way, but there’s only one way it’s not going to cost the state more money.”
Newsom is expected to announce his decision on the bill soon.
