The legislation (Assembly Bill 1840) proposed making non-citizens eligible for up to $150,000 in state-backed funding for down payment or closing costs. "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 a letter addressed to the California State Assembly. The veto came just one day after former President Donald Trump, during a speech at the Economic Club of New York, vowed to ban mortgages for illegal aliens if re-elected. While Democratic lawmakers framed the legislation as a matter of fairness, Newsom cautioned against providing Republicans with ammunition during a crucial election year. In recent weeks, the bill has faced nationwide criticism, with opponents labeling it a “handout” that would incentivize illegal immigration. “I didn’t know it was possible to make the border crisis and the housing crisis worse with just one vote, but Democrats found a way,” California Assembly Republican Leader James Gallagher (R-Yuba City) said in a statement. “Giving taxpayer-funded housing subsidies to illegal immigrants will drive costs even higher and encourage more chaos at the border,” he added. “This is crazy and it needs to stop.” Democratic Assembly member Joaquin Arambula said that the bill’s purpose was to address the state’s housing crisis. "AB 1840 is about providing an opportunity to hard-working, responsible people who dream of owning a home and passing that legacy to their children – a dream that we all have for all our families in California," Arambula said. "And, that includes undocumented immigrants who have lived here for decades and pay their taxes." Not everyone is convinced that Newsom’s veto was purely motivated by budgetary concerns. Independent journalist Nick Sortor wrote on X, “Newsom ABSOLUTELY supports it, but he knows it would be a massive political liability for him when he runs for President. He’ll find a way to make it happen regardless. You just won’t be hearing about it from the media.”California Governor Gavin Newsom has vetoed a bill that would have allowed illegal aliens to apply for the state’s first-time homebuyer assistance program.
