California’s push to expand rights and resources for undocumented immigrants faced a setback as Gov. Gavin Newsom vetoed a bill that would have allowed undocumented immigrants to access a homebuyer loan program.
Assembly Bill 1840, introduced by Assemblymember Joaquin Arambula, D-Fresno, sought to clarify that undocumented immigrants could apply for down payment assistance under the California Dream for All program, provided they met the same financial criteria required for other applicants, including securing a bank loan or mortgage.
“I’m deeply disappointed that Governor Newsom today vetoed Assembly Bill 1840,” said Arambula in a news release.
“The bill had won wide support in the Assembly and passed the Senate to get to his desk. AB 1840 simply sought to clarify language in the existing California Dream for All program, to make it clear that undocumented immigrants can apply.”
But the bill drew national media scrutiny, with strong opposition among Republicans who said it would draw more undocumented immigrants to the state, while many Californians can’t afford to buy houses.
This initiative would’ve made it easier for immigrants with taxpayer identification numbers (TINs) or Social Security numbers to receive up to $150,000 in down payment assistance.
Latest effort to extend rights to undocumented population
This effort follows a similar initiative earlier this year when California expanded Medi-Cal to cover undocumented residents of all ages, granting them access to vital healthcare benefits.
The Medi-Cal expansion completed a series of steps that began in 2016. It gradually included different age groups and, as of 2024, covered all low-income undocumented residents.
Irene Yen, who leads the Housing, Opportunity and Place (HOPe Lab) at UC Merced and focuses on housing issues, believes AB 1840 would have significantly improved housing accessibility for undocumented immigrants, especially in regions like the Central Valley.
“Expanding California Dream for All to include undocumented immigrants could help undocumented people to have more access to owning their own homes,” she said. “Homeownership increases housing stability, which is important for economic and health status for the immigrants and their families.”
According to research from the University of Southern California Center for the Study of Immigrant Integration, over 300,000 people, or 10% of adults, in the Central Valley are undocumented.
AB 1840 is part of a broader legislative trend to address the needs of the state’s immigrant and Hispanic communities.
This trend includes bills like SB 1016, known as the Latino and Indigenous Disparities Reduction Act, which mandates the collection of more detailed demographic data on Latino and Indigenous populations.
SB 1016 aims to ensure more accurate data on major diseases, leading causes of death, and health disparities, which can better inform efforts to address systemic inequalities. By collecting this detailed data, the bill seeks to reduce disparities in healthcare, housing, and other critical areas for Latino and Indigenous communities.
Widespread condemnation among Republicans
Opposition to AB 1840 has been vocal, particularly from Republican lawmakers. Senate Minority Leader Brian Jones, R-San Diego, argued the bill would divert resources from legal residents and veterans struggling to afford housing.
“Every dollar that goes to an illegal immigrant is one less dollar available to legal residents, including veterans, teachers, and families,” said Jones in a news release. “California already spends $5 billion per year on free healthcare for illegal immigrants — will it ever be enough for Democrat’s political agendas?”
Critics contended that AB 1840 would have prioritized undocumented immigrants over groups who have already made sacrifices for the country, including military veterans.
They argued California’s resources should first address the needs of legal residents, pointing to existing state expenditures for undocumented populations, including free healthcare.
Despite these concerns, Yen clarified that, to her understanding, the funding for AB 1840 would not deplete veterans’ resources.
“The program was created to support first-time homebuyers,” she said, underscoring that the bill aimed to increase housing stability for a group often facing substantial homeownership barriers.
Bill would have extended help to many in Central Valley
The Central Valley is home to 332,000 undocumented individuals, comprising 11% of the workforce and 8% of the population. Nearly one in five children in the Central Valley have at least one undocumented parent and 83% of these children are U.S. citizens, USC research showed.
“The other key area is home prices,” said Yen. “The Central Valley is increasingly unaffordable for the earning power of the residents.”
Yen emphasized that housing stability, supported by initiatives like AB 1840, can significantly improve the lives of these families.
“Homeownership for undocumented families is key to economic and health stability,” she said.
Arambula emphasized the bill was not about broader immigration or housing policies but about fairness in providing homeownership opportunities.
“I have always believed this bill is about fairness,” he said. “The veto doesn’t change the fact that many people – including undocumented immigrants – dream of owning a home so that generational wealth can be passed to their children. They are people who are responsible, work hard, and pay their ample share of taxes.”
Arambula said he remained committed to pursuing opportunities for all Californians to have equitable access to homeownership.
“They should have the same opportunities as anyone else to improve the quality of life for themselves and their families,” he said. “I look forward to continuing to work with the governor on the issues that move our state forward and truly make it a California for all.”