California Governor Gavin Newsom has vetoed the controversial state bill that would have allowed illegal immigrants to be eligible for financial assistance to purchase a home.
The proposed legislation sought to expand the state’s “California Dream for All” program, which provides no-interest loans of up to $150,000, or 20 percent of a home’s value, to assist first-time home buyers with down payments and other fees. The bill would have opened the application process for the program to illegal immigrants, allowing them to qualify for state loans for down payments. The bill had passed through both the California Senate and Assembly amid backlash from conservatives.
“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,” Newsom said in his veto message.
The veto comes after the bill’s topic began to attract national attention. Earlier this week, former President Donald Trump stated that if he were re-elected, he would ban illegal immigrants from receiving home mortgages. He also argued that the “flood” of illegal immigrants into the country is driving up housing costs, according to the Wall Street Journal.
Newsom faced mounting pressure from conservatives to veto the bill. Critics argued that the loan program should not be extended to non-citizens, especially since it had already run out of funding when it was limited to legal citizens. Many also expressed concerns that the bill could act as an additional incentive for illegal immigrants to come to California, further straining the state’s resources and contributing to the ongoing migrant crisis at the southern border.
