Bill rejected over funding concerns
California Governor Gavin Newsom has vetoed a bill that would have made undocumented immigrants eligible for state-backed home loans, citing a lack of funding for the program.
The bill aimed to expand access to the California Dream for All Program, which helps first-time homebuyers with down payments, but Newsom said the state’s limited resources made it impossible to approve.
In a letter explaining his veto, Newsom said limited funding for housing assistance programs played a key role in his decision. “Expanding program eligibility must be carefully considered within the broader context of the annual state budget to ensure we manage our resources effectively,” the governor wrote.
The California Dream for All Program, which provides financial assistance to first-generation homebuyers, did not receive new funding in the 2024 budget. Although $500 million was allocated for the program in 2022, only $20 million was set aside in 2023.
Newsom pointed to these budget constraints as a key reason for his decision to reject the bill, which aimed to expand access to home loans for immigrants without legal status.
The legislation was trying to expand eligibility for “a program that had no money,” Newsom said, calling the proposal “unnecessary”.
Joaquin Arambula, a Democrat representing Fresno who authored the bill, expressed disappointment with the governor’s veto, arguing that many undocumented immigrants contribute significantly to the state’s economy and should have the opportunity to build wealth through homeownership.
“The veto doesn’t change the fact that many people – including undocumented immigrants – dream of owning a home so that generational wealth can be passed to their children,” Arambula said in a statement. “They are people who are responsible, work hard, and pay their ample share of taxes. They will keep striving to achieve their dreams, and their contributions have strengthened our state’s economy, helping to build it into the fifth-largest economy in the world.”
Read more: California's mortgage relief program nears end of funding
The bill was met with significant opposition from Republicans, who argued that housing assistance should prioritize legal residents, especially given California’s ongoing housing affordability crisis
“This was a bad idea,” said Republican state Senator Brian Dahle, who opposed the bill. “We don’t have the resources available.”
The veto comes as part of a broader debate over expanding state services for undocumented immigrants. Earlier this year, more than 700,000 low-income immigrants without legal status gained access to free health care under California’s Medicaid program. Another bill sent to Newsom’s desk would require the state to create a plan to offer unemployment benefits to undocumented workers.
With housing affordability a major issue across California, Newsom’s veto of the home loan bill signals his administration’s focus on budget priorities, even as debates over expanding services to undocumented immigrants continue.
The governor is currently reviewing over 950 bills sent to him by state lawmakers before the legislature’s August 31 deadline. Newsom has until September 30 to decide which bills to sign into law.
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