The Democrat-controlled California Legislature has passed a controversial bill that would make California the first state in the nation to offer down payment assistance to undocumented immigrant homebuyers.
Assembly Bill 1840, approved Wednesday, would allow undocumented immigrants access to the state's taxpayer-funded mortgage program, which offers up to $150,000 in down payment assistance to qualified first-time home buyers.
The bill easily passed the state Senate on Tuesday by a 25-14 vote and then was approved by the state Assembly on a 45-15 vote. Democrats hold supermajorities in both chambers.
The bill will now head to Gov. Gavin Newsom's desk for final approval.
California Republican lawmakers have called on Governor Newsom to veto the bill, calling it a “handout” and a “betrayal” of the state's residents and encouraging illegal immigration.
“We never knew one vote could make the border and housing crises worse, 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 drive up costs even more and lead to more chaos at the border,” he added. “This is madness and it needs to stop.”
Rep. Kate Sanchez (R-Rancho Santa Margarita), the granddaughter of a legal immigrant, similarly voiced strong opposition to the bill during a House floor session on Wednesday.
Sanchez argued that migrants crossing the border illegally “see California's current policy as a giant welcome billboard.”
“Welcome to California, where illegal immigrants get free health care, free food and now free housing with zero down payment,” she said. “This isn't rocket science. If you give something for free, more people will come.”
Sanchez also noted in X that at the time the California Legislature approved the housing loan bill, “1 million Californians were living in extreme poverty and 180,000 were homeless.”
“This is an incredible betrayal of the people of this state,” she added.
California Senate Minority Leader Brian W. Jones (R-San Diego) questioned the “special treatment” given to undocumented immigrants at a time when the state is facing a housing affordability crisis.
“Many Californians who have lived here for generations can no longer afford to buy a home in their home state because of the Democrats' unsustainable economic policies,” Jones said in a statement. “Should we really be giving meager cash assistance to undocumented immigrants when so many legal residents can't afford to buy a home?”
“Every dollar that goes to illegal immigrants is one less dollar available to legal residents, including veterans, teachers and families.”
California currently faces a $68 billion budget deficit.
California Sen. Brian Dahl, a Republican from Beaver, called the bill an “insult” to state residents, including veterans, who are struggling to buy homes.
“It is wrong to prioritize illegal immigrants over those who have sacrificed so much for our country,” Dahle said in a statement. “California is already struggling with huge budget deficits, and this policy prioritization by Democratic politicians is another insult to residents who work to earn a living in our one-party state and foot the bill for ever-expanding government programs.”
San Diego County Supervisor Jim Desmond described AB 1840 as more than just “one more handout.”
“Extending state-funded home loans to illegal immigrants is not just a handout; it's a massive overreach that shifts a financial burden onto law-abiding taxpayers,” Desmond wrote to X.
Under the bill's provisions, to qualify for the loan program, illegal immigrants must have a taxpayer identification number or Social Security number.
The bill could dramatically increase the number of people applying for mortgages, which reached 18,000 this year, with only 1,700 selected through the lottery. California Grove.
Governor Newsom is scheduled to make a decision on AB 1840 by September 30, but has not indicated whether he will sign the bill into law.
The California governor is the primary surrogate for Democratic presidential candidate Kamala Harris, who earlier this month announced a plan to offer up to $25,000 in federal down payment assistance to first-time homebuyers if elected.
