Lawmakers in the Golden State have approved a first in the nation bill that would enable taxpaying illegal immigrants to secure home loans — while long-time residents continue to flee the state for other parts of the country.

The California state legislature voted 23 to 11 today in favor of the measure known as the “California Dream for All” loan program (Assembly Bill 1840). Under this program, the state will provide 20 percent in down payment assistance, totaling up to $150,000, for illegal immigrants looking to buy their first home. 

The bill will now go to Governor Newsom’s desk for final approval, but it is unclear whether he will sign off.

It has been speculated that his silence could be due to the potential for backlash against him and also Vice President Harris’s campaign as immigration continues to be a hot-button issue on the national stage.

“He doesn’t typically comment on pending legislation,” reads a statement from Mr. Newsom’s office Monday. “If the bill reaches his desk, the Governor will evaluate it on its merits.”

The program has raised the ire of many Republican state lawmakers amid what has been referred to as the “California Exodus,” in which nearly 1.7 million residents fled to other states such as Texas, Arizona, and Washington after becoming fed up with an astronomical cost of living and stringent policies during the pandemic.

“It’s not fair. It’s very unfair,” a state senator, Brian Dahle, told a local news publication, the California Globe, adding that analysis from his colleagues discovered that the plan would draw money from funds earmarked for veterans and would likely cause an increase of people fleeing the state over what they perceive as unfair policies.

“It would be so very wrong to prioritize undocumented immigrants over the men and women who have made great sacrifices in military service to our country,” Mr. Dahle added.

“California is struggling with a multi-billion dollar deficit, and numerous housing and homelessness programs providing vital assistance to so many struggling Californians face budget cuts,” he said. “The people who need a little help will get less.”

A state assemblyman, Joe Patterson, said during a May committee hearing that he “can’t get behind using our limited dollars for people who are in this country undocumented.”

A state senator, Brian Jones, also noted that “California’s budget deficit continues to grow,” yet “Democratic lawmakers are so out of touch with everyday Californians that they are quite literally taking money away from law-abiding citizens, their own constituents, and handing it over as a free gift to people who broke federal law to cross the border illegally.”

The bill, which was recently renamed the “Home Purchase Assistance Program,” was first introduced at the beginning of 2024 by a state assemblyman, Joaquin Arambula, to expand eligibility to an existing program for low- and middle-class home buyers to include tax-paying, undocumented immigrants. To be eligible, they must provide a valid taxpayer ID or Social Security number.

“We simply wanted to be as inclusive as possible within our policies so that all who are paying taxes here in our state were able to qualify,” Mr. Arambula said earlier this year, the California Globe reported.

“The social and economic benefits of homeownership should be available to everyone,” Mr. Arambula added. “The California Dream for All Program should be available to all. When undocumented individuals are excluded from such programs, they miss out on a crucial method of securing financial security and personal stability for themselves and their families.”

The bill has seen a backlash from both sides of the aisle at the state house as it makes national headlines during an election year.

If Mr. Newsom “does sign it, he’ll lose a lot of favor with progressive Democrats and hurt him with Latino voters a bit,” a state house staffer, who requested anonymity, told the California Globe Monday. “The smart play would be a veto, but on the basis that he is following federal law and mirroring Biden/Harris policy proposals. You know, ‘Hey, you’re against me for not signing it? That also means you’re against Kamala!’”

The unnamed staffer added: “The thing is, so many people are struggling to buy a house right now as costs keep going up. We know from constituents that they feel that the state needs to address this problem more. Bills like this, they feel, are ignoring the bigger issue.”