California’s Democratic-controlled state legislature has passed a polarizing bill that would make the Golden State the first in the U.S. to provide down payment assistance to illegal immigrants purchasing a home.
U.S. Assembly Bill 1840, passed Wednesday, would give undocumented immigrants access to the state’s taxpayer-funded home loan program, which provides eligible first-time homebuyers with a down payment of up to $150,000.
The bill passed the state Senate on Tuesday by a vote of 25 to 14 and was subsequently approved by the Assembly by a vote of 45 to 15. Democrats have a two-thirds majority in both chambers.
The bill now goes to Governor Gavin Newsom for final approval.
Republicans in California are urging Newsom to veto the measure, arguing that the bill would be a “handout” and a “betrayal” of the state’s citizens and would encourage illegal immigration.
“I didn’t know it was possible to make the border crisis and housing crisis worse with just one vote, but Democrats found a way,” California Assembly Republican Leader James Gallagher (R-Yuba City) said in a statement.
“Giving taxpayer-funded housing subsidies to illegal immigrants will only increase costs and create more chaos at the border,” he added. “This is insane and must stop.”
Rep. Kate Sanchez (R-Rancho Santa Margarita), the granddaughter of legal immigrants, also expressed her strong opposition to the measure in the Assembly plenary on Wednesday.
Sanchez argued that migrants crossing the border illegally “view California’s current policies as a giant welcome sign.”
“Welcome to California, where illegal immigrants get free healthcare, free food and now a free house with 0% down payment,” she said. “It’s not rocket science. If you give out free stuff, more people will come.”
Sanchez also pointed out at X that the Assembly passed the home loan bill at a time when “one million Californians live in deep poverty and 180,000 are homeless.”
“This is an incredible betrayal of the citizens of this state,” she added.
California Senate Minority Leader Brian W. Jones (R-San Diego) questioned the idea of a “gift clause” to illegal immigrants even as the state suffers from a fiscal crisis.
“Many Californians, some of whom have been here for generations, cannot afford a home in their home state because of Democrats’ unsustainable economic policies,” Jones said in a statement. “So many legal residents cannot afford a home. Should we really be giving the scant financial support to illegal immigrants here?”
“Every dollar that goes to an illegal immigrant is one dollar less available to legal residents, including veterans, teachers and families.”
California currently has a budget deficit of $68 billion.
California Senator Brian Dahle (Republican of Bieber) called the bill a “slap in the face” to the state’s citizens, including war veterans, who have difficulty purchasing a home.
“It is wrong to favor illegal immigrants over the men and women who have made great sacrifices to serve our country,” Dahle said in a statement. “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 must work to make ends meet and are forced to foot the bill for ever-increasing government programs in this state under one party’s rule.”
Jim Desmond, county commissioner of San Diego County, called AB 1840 more than just “another handout.”
“Extending government-backed home loans to illegal immigrants isn’t just another handout – it’s a massive overreach in the financial burden placed on law-abiding taxpayers,” Desmond wrote on X.
To be eligible for the loan program, an undocumented immigrant must have a tax number or social security number, the bill states.
The new law could dramatically increase the number of mortgage applications; according to the California Globe newspaper, this year it was 18,000, of which only 1,700 were selected by lottery.
Newsom, who has until Sept. 30 to make a decision on AB 1840, has not indicated whether he will sign the bill.
The California governor is a key surrogate for Democratic presidential candidate Kamala Harris, who earlier this month unveiled her plan to provide first-time homebuyers with up to $25,000 in government down payments if she is elected.
