'Dangerous Message': California Lawmakers Rebuked After Approving $150K ‘Handout’ To Illegal Immigrant Home Buyers

A homeless person confronts Long Beach Police, refusing to leave Gumbiner Park, as the city clears homeless encampments following an executive order of California Governor Gavin Newsom, in Long Beach, California, U.S. August 19, 2024. (Reuters)

California Legislature passes Assembly Bill 1840, offering down payment assistance to illegal immigrant home buyers. The bill faces opposition and awaits Governor Newsom’s decision

California lawmakers have passed a controversial bill that would make the US state the first in the country to offer down payment assistance to undocumented immigrants seeking to buy homes.

Assembly Bill 1840 was approved by the state Senate on Tuesday with a 25-14 vote and subsequently passed by the Assembly on Wednesday with a 45-15 vote. The bill now awaits Governor Gavin Newsom’s approval.

The legislation allows undocumented immigrants to access California’s taxpayer-funded home loan program, which provides up to $150,000 in down payment assistance for eligible first-time homebuyers.

Supporters And Opponents

Supporters of the bill, including its author Assemblyman Joaquin Arambula, argue that it promotes economic stability and homeownership for all residents, regardless of immigration status.

“The social and economic benefits of homeownership should be available to everyone,” Arambula stated. He argued that excluding undocumented individuals from housing initiatives perpetuates inequality and limits access to financial stability.

However, the bill has faced significant backlash from California Republicans, who argue it is a “handout” that prioritises undocumented immigrants over citizens. Assembly Republican Leader James Gallagher criticised the measure, claiming it would exacerbate both the housing crisis and the ongoing border crisis. “Giving taxpayer-funded housing subsidies to illegal immigrants will drive costs even higher and encourage more chaos at the border,” he said.

‘Giving out free stuff’

US lawmaker Kate Sanchez echoed these concerns, stating that California’s policies appear to send a welcoming message to illegal immigrants. “If you’re giving out free stuff, more people are going to come,” she said, highlighting that many Californians are struggling with poverty and homelessness.

Underlining that the “unfair policy sends a dangerous message,” State Senate Minority Leader Brian Jones also condemned the bill, questioning the wisdom of providing financial assistance to undocumented migrants when many legal residents cannot afford homes. “Every dollar that goes to an illegal immigrant is one less dollar available to legal residents, including veterans, teachers, and families,” he stated.

‘Budget deficit’

Critics point out that California is grappling with a $46 billion budget deficit and has already cut funding for various housing and homelessness programs. They argue that expanding the home loan program to include undocumented immigrants could worsen the state’s financial situation.

The bill has sparked heated debate throughout its legislative journey, with some Democrats expressing reservations about its implications. Despite the opposition, proponents argue that making homeownership accessible to undocumented immigrants can bolster local economies and contribute to the overall vitality of California.

Governor Newsom has not yet indicated whether he will sign the bill into law, but he has until September 30 to make a decision. His choice could have significant political ramifications, especially as immigration remains a pivotal issue ahead of the upcoming presidential election. Newsom is a key supporter of Democratic presidential nominee Kamala Harris, who has proposed her own federal down payment assistance plan for first-time homebuyers.