Gavin Newsom Vetoes California Bill That Would Assist Undocumented Immigrants in Purchasing Homes
The decision follows closely on the heels of Donald Trump's statement regarding his intentions to prohibit undocumented immigrants from obtaining home mortgages should he win the presidency.
TroibNews 
SACRAMENTO, California — On Friday, Gov. Gavin Newsom vetoed a bill that aimed to extend eligibility for state-backed home loans of up to $150,000 to certain undocumented immigrants, a move that drew backlash from conservative circles as immigration remains a contentious issue in the current election climate.
The Democratic governor's decision came shortly after former President Donald Trump announced plans to prohibit undocumented immigrants from obtaining home mortgages if he regains the presidency. The veto also preempts discussions on the topic ahead of Vice President Kamala Harris’ upcoming debate with Trump. A Trump campaign spokesperson, Karoline Leavitt, previously described the California bill as “fundamentally unfair but typical Democrat policy.”
In his veto message, Newsom raised concerns about the funding of the program.
"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 governor has been vocal in urging fellow Democrats to avoid provocative issues amid an election year, advising them to steer clear of topics that ignite culture wars, from banning youth tackle football to discussions surrounding reparations. He has encouraged state Democrats to prioritize issues that prevent conservative media from portraying California as disconnected from mainstream America.
Newsom's apprehensions have reportedly intensified since Harris became the party's nominee, given her California roots. However, during a briefing on a separate matter, he denied any intention of sending a message to Democratic lawmakers, asserting that his veto was based on the bill's merits.
“The bill that was sent to me was [on] a program that had no money, and it was expanding eligibility to a program that had no money,” Newsom stated. “It seemed rather curious to me. So it was unnecessary and completely consistent with prior vetoes along those similar lines.”
Republican state Sen. Brian Dahle, who challenged Newsom in the 2022 gubernatorial election, expressed support for the veto but suggested that Newsom was strategically considering the political ramifications of the bill.
“He's the master of gaslighting,” Dahle remarked. “I mean, they've been doing it forever. I've been here 12 years, and all they do is politics.”
The proposal became a focal point of debate in the Legislature during its final session, passing through the statehouse in late August amidst some dissent from moderate Democrats. It was frequently discussed on Fox News and caught the attention of Elon Musk on social media platform X.
Proponents of the bill aimed to frame it as a matter of fairness, asserting that it would clarify existing eligibility criteria for undocumented immigrants to apply for home loan programs administered by the California Housing Finance Agency. One such program, California Dream for All, is tailored for first-time, first-generation homebuyers, providing assistance for up to 20 percent of down payments, translating to as much as $150,000. This program operates under a shared appreciation loan model, requiring homebuyers to pay a portion of the home's appreciation in value upon sale, based on their income level.
The program was quickly depleted of its initial funding in only 11 days following its launch last year, facilitating loans for over 2,100 homebuyers. While the Legislature allocated $500 million for funding two years prior and $20 million in the previous budget, this year's budget was devoid of any financial provisions for the program.
Democratic Assemblymember Joaquin Arambula, the bill's sponsor, introduced the measure in response to federal laws that prevent undocumented immigrants from accessing state benefits unless eligibility is specifically outlined by state law. Undocumented applicants would have been required to possess Social Security or taxpayer identification numbers, indicating they contribute taxes.
In a statement, Arambula expressed his "deep disappointment" over the veto, arguing that the bill was not merely about immigration policies or the housing crisis.
"I have always believed this bill is about fairness," he stated. "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."
Opponents of the bill criticized it as inequitable. In a veto request letter, Senate Republicans highlighted that “legal California taxpayers are already struggling to purchase and maintain their homes,” asserting that the proposed measure would “further stretch the limited public resources available to those who are following the law and want to purchase a home.”
Assemblymember Tom Lackey, a Republican from Southern California, stated on the legislative floor before the bill's passage that while he sympathizes with undocumented individuals, it would be unjust to enact a law that would “defy accountability on every front.”
“I have a heart for everybody that’s living in this country,” said Lackey. “But there are some people who have not yet found themselves worthy of taxpayer benefits.”
This veto is not Newsom's first rejection of immigrant rights legislation. Last year, he blocked a bill that would have prevented state prisons from sharing information about noncitizens with federal authorities, emphasizing that existing laws already balance community trust and cooperation with law enforcement. In 2019, he turned down a measure aimed at restricting private security personnel from detaining immigrants in California prisons, citing potential adverse effects on prison operations.
Christopher Cadelago contributed to this report.
Ramin Sohrabi contributed to this report for TROIB News
The Democratic governor's decision came shortly after former President Donald Trump announced plans to prohibit undocumented immigrants from obtaining home mortgages if he regains the presidency. The veto also preempts discussions on the topic ahead of Vice President Kamala Harris’ upcoming debate with Trump. A Trump campaign spokesperson, Karoline Leavitt, previously described the California bill as “fundamentally unfair but typical Democrat policy.”
In his veto message, Newsom raised concerns about the funding of the program.
"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 governor has been vocal in urging fellow Democrats to avoid provocative issues amid an election year, advising them to steer clear of topics that ignite culture wars, from banning youth tackle football to discussions surrounding reparations. He has encouraged state Democrats to prioritize issues that prevent conservative media from portraying California as disconnected from mainstream America.
Newsom's apprehensions have reportedly intensified since Harris became the party's nominee, given her California roots. However, during a briefing on a separate matter, he denied any intention of sending a message to Democratic lawmakers, asserting that his veto was based on the bill's merits.
“The bill that was sent to me was [on] a program that had no money, and it was expanding eligibility to a program that had no money,” Newsom stated. “It seemed rather curious to me. So it was unnecessary and completely consistent with prior vetoes along those similar lines.”
Republican state Sen. Brian Dahle, who challenged Newsom in the 2022 gubernatorial election, expressed support for the veto but suggested that Newsom was strategically considering the political ramifications of the bill.
“He's the master of gaslighting,” Dahle remarked. “I mean, they've been doing it forever. I've been here 12 years, and all they do is politics.”
The proposal became a focal point of debate in the Legislature during its final session, passing through the statehouse in late August amidst some dissent from moderate Democrats. It was frequently discussed on Fox News and caught the attention of Elon Musk on social media platform X.
Proponents of the bill aimed to frame it as a matter of fairness, asserting that it would clarify existing eligibility criteria for undocumented immigrants to apply for home loan programs administered by the California Housing Finance Agency. One such program, California Dream for All, is tailored for first-time, first-generation homebuyers, providing assistance for up to 20 percent of down payments, translating to as much as $150,000. This program operates under a shared appreciation loan model, requiring homebuyers to pay a portion of the home's appreciation in value upon sale, based on their income level.
The program was quickly depleted of its initial funding in only 11 days following its launch last year, facilitating loans for over 2,100 homebuyers. While the Legislature allocated $500 million for funding two years prior and $20 million in the previous budget, this year's budget was devoid of any financial provisions for the program.
Democratic Assemblymember Joaquin Arambula, the bill's sponsor, introduced the measure in response to federal laws that prevent undocumented immigrants from accessing state benefits unless eligibility is specifically outlined by state law. Undocumented applicants would have been required to possess Social Security or taxpayer identification numbers, indicating they contribute taxes.
In a statement, Arambula expressed his "deep disappointment" over the veto, arguing that the bill was not merely about immigration policies or the housing crisis.
"I have always believed this bill is about fairness," he stated. "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."
Opponents of the bill criticized it as inequitable. In a veto request letter, Senate Republicans highlighted that “legal California taxpayers are already struggling to purchase and maintain their homes,” asserting that the proposed measure would “further stretch the limited public resources available to those who are following the law and want to purchase a home.”
Assemblymember Tom Lackey, a Republican from Southern California, stated on the legislative floor before the bill's passage that while he sympathizes with undocumented individuals, it would be unjust to enact a law that would “defy accountability on every front.”
“I have a heart for everybody that’s living in this country,” said Lackey. “But there are some people who have not yet found themselves worthy of taxpayer benefits.”
This veto is not Newsom's first rejection of immigrant rights legislation. Last year, he blocked a bill that would have prevented state prisons from sharing information about noncitizens with federal authorities, emphasizing that existing laws already balance community trust and cooperation with law enforcement. In 2019, he turned down a measure aimed at restricting private security personnel from detaining immigrants in California prisons, citing potential adverse effects on prison operations.
Christopher Cadelago contributed to this report.
Ramin Sohrabi contributed to this report for TROIB News
