Gavin Newsom Slaps Down California Dems’ Attempt To Give Home Loans To Illegal Migrants

Gov. Gavin Newsom vetoed a Democrat-led bill Friday that would’ve allowed illegal migrants living in the state to apply for taxpayer funded home loans.

Newsom vetoed AB 1840, legislation that sought to make illegal migrants eligible for a state program that provides first-time homebuyers with taxpayer-funded home loans, the governor’s office announced. The initiative, known as the California Dream For All Shared Appreciation Loan program, currently provides up to 20% of a house’s purchase price for down payment or closing cost to approved applicants.

The Democrat governor stated Friday that lawmakers essentially were trying to expand eligibility of a program with limited funds.

“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,” Newsom said in a statement. “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.”

The taxpayer-funded home loans provided by the program are interest-free and borrowers are not required to dole out monthly payments, making the program incredibly popular with California residents.

When applications for the $300 million program first opened up in May 2023 — offering interest-free loans to around 2,300 middle and lower-income homebuyers — funds ran dry in less than two weeks, according to the Los Angeles Times. California officials have since tightened eligibility for the program, mandating that at least one of the applicants be a first-generation home buyer and replacing the first-come-first-serve model with a lottery.