California

California could become the first state to allow home loans to undocumented immigrants

Governor Newsom has not said whether he will sign the bill into law.

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The bill that could make California the first state to grant undocumented immigrants state-supported home-buying loans passed the State Senate. Conan Nolan reports for the NBC4 News at 5 p.m. on Wednesday, Aug. 28, 2024. 

A new California bill that would allow home loans to undocumented immigrants is heading to Governor Gavin Newsom’s desk after being passed by the State Senate Wednesday.

If passed, California would become the first state to grant undocumented immigrants state-supported home-buying loans.

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“The social and economic benefits of home ownership should be available to everyone regardless of immigration status,” Assemblymember Joaquin Arambulo, the bill’s author, said. 

AB 1840 would amend the “California Dream for All” program, which gives qualified applicants a 20% down payment or up to $150,000 for their first home, to include undocumented immigrants.

“Undocumented individuals have historically been removed from housing initiatives because of federal restrictions,” Arambulo said. “Ensuring universal access by all borrowers will contribute to the overall success and vitality of California.”

Backlash has been swift from conservative news outlets and Republican lawmakers.

“For every dollar going to an illegal immigrant, that’s a dollar that isn’t going to a veteran or a legal California citizen that also qualify,” State Senator Brian Jones, the GOP Minority Leader, said. “There isn’t an unending amount of money the state has for these homebuyer program.”

Gov. Newsom has not said whether he will sign the bill, which could complicate the Democratic party’s messaging during election season on the volatile immigration issue.

Democratic presidential nominee Kamala Harris has endorsed funding for the border.

Harris has also backed a modest federal home down payment grant proposal, which excludes undocumented immigrants. 

Republican presidential nominee Donald Trump has already condemned the California legislation.

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