Newsom vetoes controversial bill that would have given housing loans to illegal immigrants

SACRAMENTO, Calif. - California Gov. Gavin Newsom vetoed a controversial bill that would have given hundreds of thousands of dollars in housing loans to illegal immigrants.

Last month, the California legislature advanced AB 1840, known as the "California Dream for All" loan program, which would have given illegal immigrants up to $150,000 in first-time homeownership loans — a bill that if signed into law would have given first-time homebuyers up to 20% of a home's value or up to $150,000 as down payment assistance.

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"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. 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," Newsom said in the veto letter.

"For this reason, I am unable to sign this bill."

However, Democratic lawmakers in the state have defended the legislation, arguing that it is simply designed to give illegal immigrants the same benefits afforded to everyone else in the state.

"It isn’t given out willy nilly to just anybody," Democratic Assemblymember Eloise Gómez Reyes said during a June hearing on the bill.

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