A growing number of lawmakers are calling on Gov. Gavin Newsom to veto a bill recently passed by the Assembly that would make it easier for illegal immigrants to get a down payment in California. Senate Republicans formally filed a veto motion to that effect on Wednesday.
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.”
After its introduction earlier this year, AB 1840 quickly became one of the most controversial bills of the session. Arambula and many Democrats have argued that many illegal immigrants have tax ID numbers and are therefore eligible, and they also want to make housing more equitable. But Republicans and moderate Democrats countered that expanding the program would be far too expensive given the state’s massive debt and that the bill also violates federal law. This was evident in the controversial vote in the House in May, 56 to 15 with nine abstentions, and also in the bill’s brief shelving earlier this month. And it was evident again Tuesday, when the bill narrowly passed the Senate, 23 to 11 with six abstentions.
All eyes on Newsom
All eyes are now on Governor Newsom, who faces one of his biggest legislative decisions of the year. Pressure is mounting from both sides. He is currently in a difficult position on immigration, supporting Vice President Kamala Harris in the presidential election because she supports a Biden proposal that would provide $25,000 for down payments to first-generation homebuyers, 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 team calls the law “fundamentally unfair but typical Democratic policy.” In addition, Newsom has become more cautious about the state’s massive debt in recent years and has vetoed most high-cost legislation, another possible reason for the bill’s failure.
Less than 24 hours after the Assembly passed the bill, opponents of the bill flooded Newsom’s office with veto requests. This included Senate Republicans, who drafted a veto request letter on Wednesday urging Newsom to block AB 1840. In addition to all of the previous arguments, GOP lawmakers specifically pointed out that every homebuying generation, from Generation Z to baby boomers, struggles to buy a home in California, and that the bill will likely make the situation even worse.
“It is wrong to favor 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 budget deficit. This political priority by Democratic politicians is the latest slap in the face to citizens who are struggling to make ends meet and are forced to foot the bill for ever-increasing government programs in this state under one party’s rule.”
Senate Minority Leader Brian W. Jones (R-San Diego) added in the letter, “Many Californians for a generation cannot afford a home in their home state because of Democrats’ unsustainable economic policies. Every dollar given to an illegal immigrant is a dollar taken away from legal residents, including veterans and their families. Not only is this policy unfair, it sends a dangerous message: ‘Come to California, legally or illegally, and claim your $150,000 home loan.’ Americans should be deeply concerned if a Harris-Waltz administration implements this policy on a national level.”
Although Newsom has given no indication as to which direction he will go on the issue, many in Sacramento believe the decision could still go either way.
“There is definitely a lot of pressure on him to veto it now,” “Dana,” a Capitol staffer, told the Globe on Wednesday. “Just in the past day, it seemed like every opponent of this bill was urging him to block it. And there are so many reasons. It’s not affordable. It violates federal law. It ignores most legal Californians. It hurts generations like Gen Z and Millennials who can’t afford homes 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, if you pass this, it could lead to illegal immigrants getting more government funding for things in the future. A lot depends on it.”
Governor Newsom is expected to make his decision on the bill by the end of September.
