California Lawmakers Approve $150,000 Down Payment Assistance for Undocumented Immigrants

The California Legislature approved a contentious bill that would make the state the first to provide down payment assistance to undocumented immigrants.

Assembly Bill 1840, which passed the state Senate and Assembly this week, allows undocumented immigrants to receive up to $150,000 in down payment assistance through the state’s taxpayer-funded home loan program.

The Senate approved the bill 25-14, and the Assembly passed it 45-15. Governor Gavin Newsom has yet to sign off on the legislation.

California Republicans have criticized the bill, claiming it places a significant financial burden on taxpayers and may exacerbate both the housing and border crises. Assembly Republican Leader James Gallagher referred to the legislation as a “handout” and a “betrayal” to California residents, claiming it will raise housing costs and encourage more illegal immigration.

“This is crazy and it needs to stop,” Gallagher said.

Assemblywoman Kate Sanchez also voiced strong opposition, pointing out that the state is already grappling with high poverty and homelessness rates. She argued that the bill sends a message to undocumented migrants that California offers significant benefits.

Senate Minority Leader Brian W. Jones echoed these concerns, questioning the wisdom of providing such financial assistance to undocumented immigrants while many legal residents struggle to afford housing.

“Should we really be giving scarce cash assistance to immigrants here illegally?” Jones asked.

The bill’s supporters argue that it is a necessary step to address the state’s housing affordability crisis and help more people become homeowners. To be eligible for down payment assistance, applicants must have a taxpayer ID or a Social Security number.

Governor Newsom has yet to indicate whether he will sign the bill into law. His decision is expected around the end of September.

The bill comes amid ongoing discussions about immigration policy and state budget priorities. It also comes as California continues to face significant economic challenges, including a $46 billion budget deficit and the recent expansion of the California Dream for All Program, which provides down payment assistance to first-time homebuyers.

New York Post and FOX News contributed to the report.