Although the state faces record debt, homelessness, and housing unaffordability, California Democrats suggest using limited taxpayer funds to help migrants secure 0% home loans and up to 20% in down payment assistance.
California’s State Senate just voted to advance Assembly Bill 1840 (AB 1840) with a 23-11 vote. If signed into law by Governor Gavin Newsom, AB 1840 would allow illegal immigrants to receive up to $150,000 in loan aid as part of the California Dream for All Program, a first-time homeowner initiative.
The California Dream for All program was instituted in June of this year. After just 11 days, it ran out of funds.
That’s not stopping California Democrats, however, from expanding the program—once only eligible to only legal California residents—to help undocumented migrants secure up to 20% down payment assistance and 0% interest on home loans.
“The social and economic benefits of homeownership should be available to everyone. As such, the California Dream for All Program should be available to all,” argues Assemblyman Joaquin Arambula (D-Fresno), the bill’s architect. “When undocumented individuals are excluded from such programs, they miss out on a crucial method of securing financial security and personal stability for themselves and their families.”
The proposal to extend this aid to undocumented migrants has been met with fierce criticism, with many Republicans (and even a notable coalition of Democrats) condemning the prospect of taxpayer money going to people who entered the country illegally and broke U.S. immigration law.
“California’s budget deficit continues to grow and Democratic lawmakers are so out of touch with everyday Californians that they are quite literally taking money away from law-abiding citizens, their own constituents, and handing it over as a free gift to people who broke federal law to cross the border illegally,” said Sen. Brian Jones (R-San Diego).
Sen. Janet Nguyen (R-Huntington Beach) also spoke out against the bill, reminding Californians that “veterans are beneficiaries of this program and [AB 1840] will be raiding their fund.” “I will always look out for our veterans and military,” said Sen. Nguyen.
The bill comes at the height of California’s notoriously expensive housing market, where the median home price has soared to $904,000 as of April 2024—up 11% from one year ago. In regions like San Francisco, Los Angeles, and Orange County, it’s considerably higher. As reported by The California Association of Realtors, only an abysmal 17% of California homebuyers can afford to purchase a median-priced, existing single-family home in the state.
It is no wonder, then, that California also leads the nation in homelessness. While around 12% of Americans call the Golden State home, so does 28% of the nation’s total homeless population. That’s up an eye-watering 40% from five years ago.
Of course, California also faces a $68 billion deficit due to out-of-control government spending.
“I just can’t get behind using our limited dollars for people who are in this country undocumented,” said Assemblyman Joe Patterson (R-Rocklin).
It remains to be seen whether or not the Governor will sign the bill into law should it pass its final vote in the State Assembly. Some speculate Newsom may elect to exhibit more self-restraint and moderation as he eyes a post-Governor political career. When asked for comment, his Office issued a vague and non-committal response: “if the bill reaches his desk, the Governor will evaluate it on its merits.”
That’s a tepid response for legislation which may have such disastrous ramifications. With housing affordability at an all-time low, homelessness at an all-time high, and a state buried under vast, seemingly insurmountable debt, the passage of AB 1840 may fuel the desire of many Californians to leave the Golden State in search of greener pastures.
