Additional Coverage:
**SACRAMENTO, California — Governor Gavin Newsom vetoed a bill on Friday that aimed to make some undocumented immigrants eligible for up to $150,000 in state-backed home loans. The move came amidst rising criticism from the right, as immigration remains a contentious issue in the ongoing election cycle.**
**This veto came just a day after former President Donald Trump announced that he would ban undocumented immigrants from obtaining home mortgages if re-elected. The decision by Newsom also removes a potential debate point ahead of Vice President Kamala Harris’ first scheduled debate against Trump next week.
Trump campaign spokesperson Karoline Leavitt slammed the proposal as “fundamentally unfair but typical Democrat policy” last month. **
**In his veto message, Governor Newsom expressed concerns about funding:**
“Expanding program eligibility must be carefully considered within the broader context of the annual state budget to ensure we manage our resources effectively,” he wrote.
**Newsom has consistently urged fellow Democrats in Sacramento to avoid giving Republicans more ammunition in an election year, advising them to tone down on divisive issues. This includes debates on everything from banning youth tackle football to reparations.
On proposals unlikely to become law, he’s pushed state Democrats to avoid making gestures that conservative media could use to depict the state as extremely out of touch with mainstream America. **
**These concerns have intensified with Vice President Harris, a Californian, as the party’s nominee. At a Friday briefing on an unrelated subject, Newsom denied any political maneuvering and said he vetoed the bill based strictly on its merits.
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“The bill had no funding and was expanding eligibility to a program without any money,” said Newsom.
“It seemed unnecessary and consistent with prior vetoes along these lines.”
**Republican state Sen. Brian Dahle, who represents a rural Northern California district and ran against Newsom in the 2022 gubernatorial race, agreed with the veto but believed it was politically motivated.
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“He’s the master of gaslighting,” Dahle commented.
“It’s all about politics.”
**The bill, a heated topic in the Legislature during the session’s final week, passed the statehouse in late August with some moderate Democrats dissenting. It became a focal point on Fox News and drew criticism from Elon Musk on social platform X.**
**Democratic lawmakers framed the bill as an issue of fairness, stating that it clarified that undocumented immigrants could apply for existing home loan programs run by the California Housing Finance Agency. One such program, California Dream for All, targets first-time, first-generation homebuyers with up to $150,000 in down payment assistance through shared appreciation loans.
Although state-funded, this program primarily generates revenue through mortgage loans rather than taxpayer money. **
**The program quickly depleted its initial phase of funding within 11 days of its launch last year, benefiting over 2,100 homebuyers. Though the Legislature approved $500 million two years ago and $20 million last year, no funding was allocated in this year’s budget.**
**Fresno Democratic Assemblymember Joaquin Arambula, who introduced the bill, argued that federal law prevents undocumented immigrants from accessing state benefits unless state law provides eligibility. He emphasized that undocumented immigrants with Social Security or taxpayer identification numbers, who contribute taxes, should qualify.**
“AB 1840 is about fairness, not immigration policies or the housing crisis,” Arambula stated after the measure passed.
**Republicans decried the bill as unfair. In a veto request to Newsom, Senate Republicans argued that legal California taxpayers struggling to buy homes should not see limited public resources stretched further for those not following the law.**
**Assemblymember Tom Lackey, a Southern California Republican, acknowledged having close undocumented friends but stated that creating such a law would “defy accountability.” “I have a heart for everyone in this country,” he said, “but some people have yet to earn taxpayer benefits.”
**This isn’t the first time Newsom has rejected legislation supporting immigrant rights. Last year, he vetoed a bill preventing state prisons from sharing noncitizens’ information with federal officials, contending that current law maintains the right balance to foster community trust.
Similarly, in 2019, Newsom vetoed legislation barring private security from arresting immigrants in state prisons, citing potential negative impacts on prison operations. **