California's Democratic governor, Gavin Newsom, on Friday rejected a bill that would have made California the first in the nation to offer down payment assistance to undocumented immigrant homebuyers.
Assembly Bill 1840, approved last month by both houses of the Democrat-controlled California Assembly, sought to allow undocumented immigrants access to the state's taxpayer-funded mortgage program that offers up to $150,000 in down payment assistance to qualified first-time home buyers.
In announcing his veto, Governor Newsom, 56, expressed concerns about the impact expanding the program would have on the budget.
“Given the limited funds available, [California Housing Finance Agency] “Any expansion of program coverage must be carefully considered within the broader context of the state's annual budget to ensure we are effective stewards of our resources,” he wrote. Note “For this reason, I cannot sign this bill,” the California lawmakers said.
California faced a $46 billion budget deficit last fiscal year before Governor Newsom signed the state's new spending plan in June.
Newsom's veto followed strong criticism of the bill from California Republican lawmakers, who said the bill was a “handout” and a “betrayal” of the state's residents that would encourage illegal immigration.
“Extending state-funded home loans to illegal immigrants is more than a handout; it's an egregious overreach that shifts a financial burden onto law-abiding taxpayers,” San Diego County Supervisor Jim Desmond said of AB 1840 in a post on X.
“One million Californians are living in extreme poverty and 180,000 are homeless… this is an incredible betrayal of the people of our state,” State Assemblywoman Kate Sanchez (R-Rancho Santa Margarita) wrote to X after the bill passed the state Assembly.
The California governor's decision not to sign the bill came a day after former President Donald Trump blasted the bill in a speech to the Economic Club of New York on Thursday, saying he would “ban home loans for illegal immigrants” if elected.
“California is about to pass a bill that would give illegal immigrants money to buy homes.” Trump“But our soldiers, our veterans who are lying on the streets, they can't get that.”
Governor Newsom denied that politics played any role in his veto decision.
“The bill that was sent to me was an unfunded program and it would expand eligibility to an unfunded program,” Newsom told reporters. According to Politico.
“It seemed pretty odd to me,” he added, “so it was unnecessary and entirely consistent with previous vetoes along similar lines.”
