Governor Gavin Newsom’s Veto of Down Payment Assistance Bill for Undocumented Immigrants Raises Eyebrows.
California Governor Gavin Newsom has come under scrutiny for striking down a bill that aimed to make the state the first in the nation to offer down payment assistance to illegal immigrant home buyers. The proposed legislation, Assembly Bill 1840, was approved by both chambers of the Democrat-controlled California Legislature last month and sought to grant undocumented immigrants access to the state’s taxpayer-funded home loan program. This program provides up to $150,000 in down payment assistance for eligible first-time home buyers.
Governor Newsom, 56, expressed concern over the budgetary impact that expanding the program would have on California’s finances in his veto announcement. He stated, “Given the finite funding available for [California Housing Finance Agency] 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 Golden State faced a $46 billion budget deficit last fiscal year before Governor Newsom signed the state’s new spending plan in June. His veto follows intense criticism from California Republicans, who argued that the bill was nothing more than a “handout” and a “betrayal” of citizens of the state that would incentivize illegal immigration.
San Diego County Supervisor Jim Desmond stated, “Expanding state-funded home loans to include illegal immigrants is not just another handout—it’s a massive overreach that shifts the financial burden onto law-abiding taxpayers.” Meanwhile, Assemblywoman Kate Sanchez (R-Rancho Santa Margarita) expressed her disappointment after the measure cleared the state assembly, writing, “This is an unbelievable betrayal to the citizens of this state.
Governor Newsom’s decision not to sign the bill into law also comes one day after former President Donald Trump criticized the legislation during a speech at the Economic Club of New York, where he announced that if elected, he would “ban mortgages for illegal aliens.
Newsom denied that politics played any role in his veto decision. He told reporters, according to Politico, “The bill that was sent to me was a program that had no money, and it was expanding eligibility to a program that had no money. It seemed rather curious to me. So it was unnecessary and completely consistent with prior vetoes along those similar lines.
