California Proposition: Providing $150,000 Home Purchase Assistance for Undocumented Immigrants

California lawmakers may soon pass a proposal to provide up to $150,000 in housing loan assistance to undocumented immigrants.

On August 27 (Tuesday), the California State Senate voted in favor of Assembly Bill 1840 (AB1840), which aims to allow undocumented immigrants to qualify for housing assistance through the “California Dream for All” program.

The “California Dream for All” program was launched by the California Housing Finance Agency (CalHFA) in 2023, providing up to 20% or a maximum of $150,000 in first-time homebuyer assistance for eligible low- to moderate-income individuals to pay for down payment and/or closing costs.

This program is funded by taxpayer money from the state government, and currently only California citizens are eligible to apply. When applications were first opened last year, the $300 million fund was depleted within just 11 days. According to a statement from the Governor’s Office in June, due to limited funds, there were as many as 18,000 applicants this year, but only 1,700 Californians ultimately received assistance.

Despite this, Democratic lawmakers aim to extend eligibility to undocumented immigrants. The sponsor of AB1840, Joaquin Arambula, stated that lawmakers need to find ways to help everyone achieve the dream of homeownership.

AB1840 explicitly states that assistance eligibility cannot be solely canceled based on the applicant’s immigration status—effectively allowing undocumented immigrants to receive up to $150,000 in taxpayer funds.

Arambula further explained that restricting opportunities for assistance programs “would perpetuate inequality,” while expanding opportunities would help promote economic stability in California.

Opponents argue that California is facing a multi-billion-dollar deficit, with many housing and homelessness programs facing budget cuts. AB1840 could potentially worsen the situation.

Brian Jones, the Minority Leader of the California State Senate, stated in a release on August 26: “As Californians continue to face historically low housing affordability under Democrat rule, many second, third, and fourth-generation Californians are finding it impossible to purchase a home in their own hometown.”

“In a situation where many legal residents cannot afford homes, do we really want to provide free cash to illegal immigrants? Every dollar going to illegal immigrants would mean one less dollar for our legal residents like veterans and teachers,” he said.

AB1840 is being proposed against the backdrop of the U.S. presidential election, with the issue of undocumented immigrants becoming a focal point. According to data from the non-profit organization California Budget and Policy Center, by 2023, California had over 11 million immigrants, accounting for 28% of the state’s population.

On Tuesday, the State Senate approved AB1840 with a 25-14 vote. Next, the proposal will return to the Assembly for a final vote, and if passed, it will be sent to Governor Newsom’s desk for approval.

As of the submission deadline, Newsom has not indicated whether he will approve the proposal upon receipt, and he has not responded to requests for comment.

AB1840 was jointly written by the Coalition for Humane Immigrant Rights and has garnered support from various housing organizations, the California Faculty Association, and other institutions.

However, Li Shaomin, the chairman of the Organization for Justice and Equality, expressed confusion. He questioned why lawmakers would strip the rights of legal California residents and allocate limited taxpayer resources to provide free medical, housing, and other services to undocumented immigrants, asking, “Are they representing undocumented immigrants?”

San Diego County Supervisor Jim Desmond said in a statement: “In the face of a $60 billion deficit in California, this decision undoubtedly gives a resounding slap in the face to struggling taxpayers and legal residents.”