Newsom Considers up to $150,000 Payments to Illegal Immigrants To Help With Buying California Homes

By: Alex Trent | Published: Aug 28, 2024

California Governor Gavin Newsom still hasn’t publicly indicated whether he would support a measure that just passed the California legislature approving up to $150,000 in loans to help illegal immigrants with home down payments.

This new proposal would make California the first state in the country to make undocumented immigrants eligible for state-supported home loans.

New Proposal

A bill known as AB 1840 would expand the state’s already existing California Dream for All Program to allow undocumented immigrants who are already living in the state to qualify.

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If made into law, the bill would allow these immigrants to receive up to a 20% payment to help with a housing down payment or closing costs.

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Immigration Status

The bill aims to eliminate restrictions around immigration status, though it would still require migrants to have a social security number and an ability to show they pay taxes.

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“An applicant who meets all other requirements for a loan under the program and who is otherwise eligible under applicable federal and state law, shall not be disqualified solely based on the applicant’s immigration status,” the bill says.

Restrictions

This program is only available to first-time homebuyers or if one of the borrowers is a first-generation homebuyer.

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The program also caps the maximum payment that a borrower can receive at $150,000.

Lottery System

Although undocumented immigrants would now qualify for the program under the new legislation, they would not be guaranteed to get a payment.

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The program operates with a lottery system. Last year, out of 18,000 applicants only 1,700 managed to get chosen.

Passing the Legislature

On Tuesday, the bill came up for a vote and passed the state senate overwhelmingly with a 23-11 tally.

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This is a substantial move, given that the state also has the largest share of undocumented immigrants as residents in the United States.

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Calling California Home

California state Rep. Joaquin Arambula, who authored the bill, feels that it is important to address the issue of immigration status that has been unclear with the loan program.

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“The program hasn’t been clear about eligibility for undocumented individuals, and AB 1840 addresses that issue,” Arambula told KTLA . “Let me be clear: anyone who meets the program’s criteria can apply for this loan program. And, to qualify, you must secure a bank loan or mortgage. AB 1840 is about providing an opportunity for homeownership, which we know allows families to secure financial security and stability. The ability to do this strengthens local economies and benefits all people who call California home.”

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Inclusive as Possible

Arrambula in separate comments emphasized that its only fair that undocumented immigrants who are paying taxes in the state have the same access to services as everyone else.

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“We simply wanted to be as inclusive as possible within our policies so that all who are paying taxes here in our state were able to qualify,” Arambula told Politco. “Without the intentional law that we are introducing, we felt that there were complexities and questions that many in the immigrant community would have.”

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Taking Care of Our Own

Republicans have come out to criticize the bill for being “free handouts” and unfair to California residents who are in the country legally.

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“With many legal residents not able to afford a home, should we really be giving free cash to illegal immigrants? Every dollar that goes to an illegal immigrant is one less dollar available to legal residents including veterans, teachers, and families,” said Senate Minority Leader Brian Jones. “California already spends $5 billion per year on free healthcare for illegal immigrants – will it ever be enough for Democrats’ political agendas?”

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Trump Campaign’s Position

Karoline Leavitt, a spokesperson for the Trump campaign, framed the bill as “fundamentally unfair but typical Democrat policy.”

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If signed by Newsom, the bill could become a useful political cudgel for the Trump campaign to attack the governor and Trump’s presidential opponent Kamala Harris who are both from California.

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Newsom’s Thoughts

Governor Newsom has been publicly quiet about the proposal, likely as a result of his surrogacy for the presidential campaign during an election year where Biden’s policies on immigration have been divisive with Americans.

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“[Newsom] doesn’t typically comment on pending legislation,” a Newsom spokesperson told Fox News Digital. “If the bill reaches his desk, the Governor will evaluate it on its merits.” Now that the bill has passed, Newsom will likely have to weigh in himself soon.

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Americans Divided on Immigration

Immigration issues are being viewed as a weakness for the party as the general election draws near.

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A Harvard CAPS/Harris poll in February found that one of the top reasons cited for Biden’s low approval rating was his handling of the issue of immigration.

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