Gavin Newsom’s recent veto has reignited a fiery debate across California.
At a Glance
- California Gov. Gavin Newsom vetoed a bill that would have provided housing loans to illegal immigrants
- The bill, AB 1840, was known as the “California Dream for All” loan program
- It proposed giving illegal immigrants up to $150,000 in first-time homeownership loans
- Newsom cited limited funding and the need to manage resources effectively as reasons for the veto
- Democratic lawmakers argued the bill aimed to provide equal benefits to illegal immigrants
Governor Newsom’s Bold Move
California Governor Gavin Newsom recently vetoed Assembly Bill 1840, also known as the “California Dream for All” loan program. The vetoed bill proposed granting housing loans of up to $150,000 to illegal immigrants. Newsom’s decision has elicited strong reactions from both supporters and opponents, sparking widespread media scrutiny and public debate.
Newsom cited the state’s limited funding and the need to manage resources effectively as his primary reasons for vetoing the bill. “Given the finite funding available for [the CalHFA] programs, expanding program eligibility must be carefully considered within the broader context of the annual state budget to ensure we manage our resources effectively,” Newsom said in his veto message.
The Controversial Bill
Assembly Bill 1840 aimed to make illegal immigrants eligible for the California Dream for All Shared Appreciation Loans program. Introduced by Assemblymember Joaquin Arambula, the program offers interest-free loans up to $150,000 to low-income, first-time homebuyers for down payments and fees. The initial funding of $300 million helped nearly 2,200 applicants and exhausted in just 11 days.
“This bill seeks to prohibit the disqualification of applicants from one of California Housing Finance Agency’s (CalHFA) home purchase assistance programs based solely on their immigration status. Given the finite funding available for CalHFA programs, expanding program eligibility must be carefully considered within the broader context of the annual state budget to ensure we manage our resources effectively,” Newsom said in the veto letter. “For this reason, I am unable to sign this bill.”
The bill aimed to offer up to 20% of a home’s value or up to $150,000 as down payment assistance. Democratic lawmakers argued the bill aimed to provide equal benefits to illegal immigrants, while some opponents feared it would divert resources from U.S. citizens or encourage illegal immigration.
Opposition and Support
The bill faced significant opposition in the state Senate and Assembly. Republican lawmakers and conservative news outlets, including State Senator Brian Jones, argued the bill would divert funds from veterans and legal citizens. “Legal California taxpayers are already struggling to purchase and maintain their homes,” said critics of the bill.
On the other hand, Democratic supporters like Assemblymember Eloise Gómez Reyes emphasized that the loans wouldn’t be given out indiscriminately. “It isn’t given out willy nilly to just anybody,” Reyes said during a June hearing on the bill. They argued that the bill was about fairness and the dream of homeownership for undocumented immigrants.
“Given the finite funding available for [the CalHFA] programs, expanding program eligibility must be carefully considered within the broader context of the annual state budget to ensure we manage our resources effectively,” Newsom said in his veto message. “The bill that was sent to me was a program that had no money.
“I’m deeply disappointed that Gov. Newsom today vetoed AB 1840,” Arambula said in a statement Friday. “The veto doesn’t change the fact that many people, including undocumented immigrants, dream of owning a home so that generational wealth can be passed to their children.” The story is still developing, with more updates expected in the coming weeks and months.
