California Governor Gavin Newsom vetoed a contentious bill on Friday that would have made some undocumented immigrants eligible for state-backed home loans of up to $150,000. The decision comes at a politically charged moment, as immigration continues to be a focal point in the lead-up to the 2024 presidential election. The bill, which passed through the California Legislature in late August, had ignited significant criticism from conservative circles, particularly in light of former President Donald Trump's recent vow to ban mortgages for undocumented immigrants if he returns to the White House.
In his veto message, Newsom cited concerns over funding as the primary reason for his decision. "Expanding program eligibility must be carefully considered within the broader context of the annual state budget to ensure we manage our resources effectively," the Democratic governor wrote. This statement aligns with his ongoing warnings to fellow Democrats to avoid providing fuel for Republican attacks in an election year, particularly on hot-button issues like immigration and housing.
The proposed legislation, championed by Democratic Assemblymember Joaquin Arambula, aimed to clarify that undocumented immigrants could apply for existing home loan programs run by the California Housing Finance Agency (CalHFA). One such program, California Dream for All, is designed for first-time, first-generation homebuyers and offers 20% in down payment assistance, with loans up to $150,000. The program has been popular, quickly exhausting its initial funding phase within 11 days of its launch last year. However, despite its success, the program was not allocated additional funds in this year's budget, leading Newsom to argue that the bill was expanding eligibility for a program with no current funding.
Arambula expressed deep disappointment in Newsom's veto, insisting that the bill was not about immigration policy but fairness in housing opportunities. "The veto doesn't change the fact that many people - including undocumented immigrants - dream of owning a home so that generational wealth can be passed to their children," Arambula said in a statement. "They are people who are responsible, work hard, and pay their ample share of taxes."
However, Republican lawmakers and conservative commentators criticized the bill as fundamentally unfair. They argued that it would further stretch California's limited public resources and place additional burdens on legal taxpayers who are already struggling to purchase homes. In a veto request to Newsom, Senate Republicans contended that the measure would disadvantage those who are "following the law and want to purchase a home."
Newsom's veto is consistent with his previous actions on similar issues. Last year, he vetoed a measure that would have prohibited state prisons from sharing information about noncitizens with federal officials. In 2019, he quashed legislation that would have barred private security personnel from arresting immigrants in California prisons, citing concerns over prison operations.
The decision to veto this latest bill may also reflect the broader political climate as the 2024 election approaches. With Vice President Kamala Harris, a Californian, set to debate Trump next week, Newsom's veto removes a potentially controversial issue from the political stage. Despite his denial that the veto was politically motivated, many observers believe that Newsom is keenly aware of the national implications of state legislation, particularly when it touches on contentious issues like immigration.
Republican state Sen. Brian Dahle, who ran against Newsom in the 2022 gubernatorial race, suggested that the governor's decision was indeed influenced by the political landscape. "He's the master of gaslighting," Dahle said. "I mean, they've been doing it forever. I've been here 12 years, and all they do is politics."
