California governor vetoes bill to make immigrants without legal status eligible for home loans
Associated Press/Report for America — California Gov. Gavin Newsom on Friday vetoed a bill that would have made immigrants without legal status eligible for loans under a state program that provides assistance to first-time home buyers.
The bill drew stiff opposition from Republicans far beyond California, with many arguing that the state, known for its expensive housing market, should prioritize housing assistance for legal residents. But proponents say the legislation would have improved the quality of life for hardworking families, regardless of their immigration status.
Newsom, a Democrat who is often seen as a potential future presidential candidate, said he could not sign the bill because of limited funding available for state housing assistance programs.
“Expanding program requirements must be carefully considered within the broader context of the annual state budget to ensure we are effectively managing our resources,” Newsom wrote in a letter explaining his decision.
The proposal is one of several that state lawmakers have floated in recent years to expand services for immigrants living in the country illegally. Another bill the Legislature sent to Newsom this year would require the state’s Employment Development Department to develop a plan by March 31, 2025, to provide cash assistance to unemployed residents who are ineligible for unemployment benefits because of their immigration status.
More than 700,000 low-income immigrants without legal status gained access to free health care earlier this year under the state’s Medicaid program, after Newsom and lawmakers agreed in 2022 to expand access to adults regardless of their immigration status.
Republican Senator Brian Dahle, who ran against Newsom said in the 2022 gubernatorial election that he was happy with his veto because the bill would not be fair to long-time legal California residents who are struggling financially.
“This was a bad idea,” Dahle said. “We don’t have the resources available.”
Republican lawmakers sent Newsom a letter last week urging him to veto the bill.
No money was allocated for the California Dream for All Program, which provides loans to first-generation home buyers, Newsom’s budget signed in Juneaccording to the Ministry of Finance. In the 2022 budget, $500 million was set aside for the program, and in the 2023 budget, $20 million was allocated.
The state has approved mortgages for nearly 4,000 families under the program since 2023, Newsom announced in June. The program offers up to 20% and no more than $150,000 toward a down payment or closing costs on a home, according to the California Housing Finance Agency.
The governor said at a news conference Friday that he did not want to speculate on whether he would have signed the mortgage relief bill if more money had been available.
The legislation was aimed at expanding eligibility to a “program that didn’t have the money,” Newsom said, calling the proposal “unnecessary.”
Joaquin Arambula, a Democrat who represents Fresno and authored the bill, said he was “deeply disappointed” with Newsom’s decision.
“The veto does not change the fact that many people — including undocumented immigrants — dream of owning their own homes so they can pass on generational wealth to their children,” he said in a statement. “They are people who are responsible, hard-working, and pay their fair share of taxes. They will continue to strive to achieve their dreams, and their contributions have strengthened our state’s economy and helped make it the fifth-largest economy in the world.”
State lawmakers sent Newsom more than 950 bills last month, according to veteran lobbyist Chris Micheli. The governor has until Sept. 30 to decide which ones to sign.
___
Austin is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on under-covered issues. Follow Austin on X: @sophieadanna