California Governor Gavin Newsom has vetoed Assembly Bill 1840, which aimed to expand the California Dream for All Shared Appreciation Loans program to include undocumented immigrants. The decision, announced on Friday, was primarily based on budget constraints and the need for careful resource management.

The California Dream for All program, launched last year, offers interest-free loans of up to $150,000 to low-income, first-time home buyers for down payments and fees. The program initially received $300 million in taxpayer funds, financing nearly 2,200 loans, with an additional $225 million later provided to assist about 1,700 more applicants.

Assemblymember Joaquin Arambula (D-Fresno), the bill’s lead author, expressed disappointment with the veto. He emphasized that the bill was about fairness and providing opportunities for undocumented immigrants to build generational wealth through homeownership. The proposed legislation would have required applicants to provide a taxpayer identification number or Social Security number when applying for a loan.

Governor Newsom, in his veto message, cited the limited funding available for California Housing Finance Agency (CalHFA) programs as the primary reason for his decision.

“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,” he wrote.

The bill had faced opposition from Republican lawmakers, who argued it could take opportunities away from US citizens or encourage illegal immigration. State Senator Brian Jones, the GOP Minority Leader, expressed concern about allocating resources to undocumented immigrants at the expense of veterans or legal California citizens.

Currently, the California Dream for All program is not accepting new applications as all its funding has been allocated. The program offers qualified buyers a loan worth up to 20% of a house or condominium’s purchase price, capped at $150,000, with unique repayment terms based on the property’s appreciation.

Governor Newsom declined to elaborate further on his decision at a news conference in Sacramento, reiterating that the rejection was based on cost considerations. He emphasized that the bill proposed a program without allocated funds.

Information for this story was found via LA Times, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.