A California proposal could make undocumented immigrants eligible for up to $150,000 in state-supported home loans
A groundbreaking proposal in California could make undocumented immigrants eligible for state-supported home loans up to $150,000, just as immigration becomes a heated issue in the presidential election.
The bill is expected to pass the California Legislature, where Democrats hold a supermajority, in a state that has the highest percentage of undocumented immigrants in the U.S.
Democratic Governor Gavin Newsom, a prominent supporter of President Joe Biden and Vice President Kamala Harris, hasn’t yet confirmed whether he’ll sign the bill if it clears the statehouse by the August 31 deadline. His decision may come while Republican nominee Donald Trump continues to criticize Harris for the surge in migrants at the U.S.-Mexico border during the early Biden administration. As Harris shifts her stance on immigration, this proposal could add political tension.
In her DNC acceptance speech, Harris called for immigration reform and celebrated the U.S. as a "nation of immigrants." Although the California plan focuses on potential homebuyers, not new migrants, it may still pose political risks for Harris, giving Trump an opportunity to link her with the ongoing border crisis.
Trump campaign spokesperson Karoline Leavitt called the proposal "fundamentally unfair but typical Democrat policy." The Harris campaign did not comment.
California Republicans are also pushing back. GOP Assemblymember Joe Patterson expressed concerns at a committee hearing, stating he couldn’t support using state funds for undocumented individuals.
The bill’s author, Democrat Joaquin Arambula of Fresno, explained that the program’s applicants must meet Federal National Mortgage Association (Fannie Mae) requirements, such as having a taxpayer identification number or social security number, which proves they are taxpayers.
Democratic Assemblymember Eloise Gómez Reyes emphasized that the assistance isn’t freely given: "It isn’t given out willy nilly to just anybody."
The loan program, called California Dream for All, provides up to 20 percent in down payment assistance, capped at $150,000. It operates as a shared appreciation loan, where the homebuyer only pays interest based on the home’s increase in value upon sale. The program is funded by the state but is run by the California Housing Finance Agency, which generates revenue through mortgage loans rather than taxes.
Arambula clarified that he didn’t want to confuse this proposal with broader immigration debates. Though there’s no formal opposition to the bill, it might still become a political flashpoint as the election nears. The proposal responds to existing federal laws that block undocumented immigrants from accessing state benefits unless eligibility is provided by state law.
"We simply wanted to ensure inclusivity so that all tax-paying residents in our state could qualify," Arambula told POLITICO. "Without this specific law, many in the immigrant community would face uncertainty."
At the federal level, Harris is advocating for a Biden administration plan that would offer up to $25,000 in down payment assistance to first-time, first-generation homeowners, although undocumented immigrants wouldn’t be eligible under current federal laws.