California State Legislature Passes Controversial Bill to Provide Down Payment Assistance to Undocumented Immigrants
In a groundbreaking move, the Democrat-controlled California State Legislature has passed Assembly Bill 1840, which would make California the first state in the nation to offer down payment assistance to undocumented immigrants looking to purchase homes. The bill, which grants access to the state’s taxpayer-funded home loan program, could provide up to $150,000 in down payment assistance to eligible first-time home buyers.
The legislation easily cleared the state Senate by a 25-14 margin and was subsequently approved by the Assembly in a 45-15 vote. With Democrats holding supermajorities in both chambers, the bill now awaits final approval from Gov. Gavin Newsom.
However, the bill has faced strong opposition from California Republicans, who argue that it is a “handout” and a betrayal to citizens of the state. Assembly Republican Leader James Gallagher expressed his concerns, stating, “Giving taxpayer-funded housing subsidies to illegal immigrants will drive costs even higher and encourage more chaos at the border. This is crazy and it needs to stop.”
Assemblywoman Kate Sanchez, who is the granddaughter of legal immigrants, also voiced her opposition to the measure, highlighting the fact that the bill sends a message to migrants crossing the border that California is a sanctuary state. She argued, “If you’re giving out free stuff, more people are going to come.”
Critics of the bill also argue that it will worsen California’s existing housing crisis and force citizens, including military veterans, to compete with undocumented migrants for taxpayer-funded down payment assistance. With approximately 1 million Californians living in deep poverty and 180,000 homeless individuals, the bill has been deemed an “unbelievable betrayal” to the citizens of the state.
California Senate Minority Leader Brian W. Jones questioned the allocation of funds to undocumented migrants when the state is already suffering from an affordability crisis. He stated, “Every dollar that goes to an illegal immigrant is one less dollar available to legal residents including veterans, teachers, and families.”
The bill’s passage has also sparked concerns about the state’s budget deficit, which currently stands at $68 billion. California Sen. Brian Dahle criticized the prioritization of undocumented immigrants over citizens, particularly military veterans who have made sacrifices for the country. He called the bill a “slap in the face” to those struggling to buy homes.
San Diego County Supervisor Jim Desmond went further, characterizing AB 1840 as a massive overreach that shifts the financial burden onto law-abiding taxpayers. He emphasized that expanding state-funded home loans to include illegal immigrants is not just another handout, but a significant policy change.
To be eligible for the loan program, undocumented immigrants must have a taxpayer ID number or a Social Security number. If enacted into law, the legislation could dramatically increase the number of applicants for the home loans. This year alone, 18,000 people applied for the program, but only 1,700 were chosen through a randomized lottery system, highlighting the high demand for assistance.
As the bill awaits Gov. Newsom’s decision, it remains uncertain whether he will sign it into law. Newsom, who is a top surrogate for Democratic presidential nominee Kamala Harris, has until September 30th to make a final decision. Notably, Harris herself recently unveiled a plan to offer up to $25,000 in federal down payment assistance for first-time homebuyers if elected president.
