(Rightallegiance.com) – California Governor Gavin Newsom has vetoed a controversial bill that would have extended significant housing loan benefits to illegal immigrants. The legislation, Assembly Bill 1840 (AB 1840), also known as the “California Dream for All” loan program, was designed to provide first-time homeownership loans to individuals, including undocumented immigrants.
Under the proposed law, up to $150,000 in financial assistance could have been offered as part of a down payment for a home. Specifically, the loan program sought to cover up to 20% of a home’s value or offer a maximum of $150,000 in assistance for eligible first-time buyers.
Despite its legislative support, Newsom expressed concerns over the program’s financial viability, particularly given the limited funds available to the California Housing Finance Agency (CalHFA). “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,” Newsom explained in his veto letter.
He added, “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.”
His ultimate decision to veto the bill was driven by concerns over resource allocation, saying, “For this reason, I am unable to sign this bill.”
The bill, which passed through the California legislature in the previous month, has garnered strong backing from Democratic lawmakers who believe it would have leveled the playing field for illegal immigrants seeking to achieve homeownership.
Assemblymember Eloise Gómez Reyes, a key supporter of the legislation, defended the program during a June hearing, stating that the benefits are not distributed indiscriminately. “It isn’t given out willy nilly to just anybody,” Reyes emphasized, asserting that the bill merely aims to grant undocumented individuals the same opportunities that other residents of the state already enjoy.
Though the bill has been vetoed, the debate continues as both supporters and critics of the measure consider the broader implications for immigrant rights, housing assistance, and state budget priorities in California.