On Friday, Gov. Gavin Newsom declined to sign into law a bill expanding housing down-payment assistance to Californians regardless of immigration status.

California’s Dream For All program offers up to $150,000 in down payment and closing cost assistance to eligible applicants. AB Bill 1840 — authored by Assemblymember Joaquin Arambula (D-Fresno) — would have eliminated immigration status as a criterion for eligibility. Applicants would still have had to qualify for a home loan under lender rules.

Newsom said that given California’s tight budget, he would not sign the bill.

“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 said in his letter. “For this reason, I am unable to sign this bill.”

Newsom Rejects Bill With $150K Homebuyer Aid for Undocumented Immigrants

Related Story: $150,000 for Undocumented Immigrants to Buy Homes? CA Lawmakers Say ...

AB 1840 Drew Controversy

Mortgage lenders require a social security or tax identification number from home loan applicants. Under the assistance program, loans have to be repaid when the home sells, with a percentage of the home’s increase in value paid back to the state.

Arambula said in a news release that his bill was about including all taxpayers and creating “fairness.”

Newsom’s decision “disappointed” him, the lawmaker said.

“AB 1840 simply sought to clarify language in the existing California Dream for All Program, to make it clear that undocumented immigrants can apply,” Arambula said. “The fact is, right now, anyone can apply who is a first-time homebuyer who can meet the program’s financial requirements that include securing a bank loan or mortgage.”

But the program has famously been oversubscribed. When it debuted in 2023, the $300 million in the first round was used up in 11 days.

The Senate Committee on Appropriations did not know how much more adding undocumented immigrants to the program would have cost but said in a bill analysis that it would have “unknown significant cost pressures, potentially in the millions annually.”

State Sen. Janet Nguyen (R-Huntington Beach) said on X that she opposed the bill because it would make it harder for veterans to qualify.

Presidential candidate Donald Trump’s campaign also weighed in after the bill made national headlines. A Trump campaign spokesperson called the bill “fundamentally unfair but typical Democrat policy.”

Lawmakers did not allocate funds for the Dream For All program in the 2024-25 budget, CalMatters reported.