Gov. Gavin Newsom vetoed a bill on Friday that would have made some undocumented immigrants eligible for state-backed home loans.
Assembly Bill 1840, authored by Democratic Assemblymember Joaquin Arambulo of Fresno, would have expanded programs like California’s Dream for All, giving eligible applicants a 20% down payment or up to $150,000 for their first home, regardless of immigration status.
In a letter to the state Assembly, Newsom cited funding limitations.
“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 wrote.
According to reporting from Cal Matters, the California Department of Finance told KCRA that the program quickly ran out of funding after it launched last year and that lawmakers didn’t appropriate funds for it this year.
The bill prompted wide criticism from Republican lawmakers who sent a letter to Newsom saying housing assistance programs should prioritize “legal California taxpayers.”
Newsom’s veto comes after former President Donald Trump said he would ban undocumented immigrants from receiving home mortgages if he wins the presidency.
The governor has until Sept. 30 to sign or veto hundreds of bills that reached his desk.