California governor Gavin Newsom
California governor Gavin Newsom Reuters / LUCY NICHOLSON

As California sits on the verge of becoming the first state to allow public universities hire undocumented students without legal work permits, a new initiative passed by lawmakers this week looks destined to become the state's newest hot immigration-related topic.

The bill, which would allow certain undocumented immigrants access low-cost loans for first-time homebuyers, was approved by a vote of 25-14 by the California Senate and 45-15 in the Assembly.

The initiative now awaits the decision of Democratic governor Gavin Newsom, who has a month to sign or veto the legislation. Newsom has not commented on the bill, which has drawn national attention as immigration becomes a central issue in the presidential campaign.

The bill, authored by Assemblymember Joaquin Arambula, a Democrat from Fresno, is framed as an issue of fairness. Arambula said it is intended to allow those who contribute to the system to benefit from it.

The bill targets undocumented immigrants who have either Social Security or taxpayer identification numbers, making them eligible for existing homebuyer loan programs run by the California Housing Finance Agency. This includes the California Dream for All program, which offers up to $150,000 in down payment assistance for first-time homebuyers who meet certain income limits. The program receives state funding but is also financed through mortgage loans and does not rely on taxpayer money.

"This is not a bill about immigration," Arambula said on the Assembly floor prior to the passing of the measure, Politico reported. "This is not a bill about the housing crisis. We all know that no single bill can solve those areas. This is a bill about fairness. Those that are paying into a system should be able to receive benefits from those same systems as everyone else does."

Republican lawmakers have predictably opposed the bill, arguing it would divert resources away from veterans and others who are legally in the country and facing housing challenges. One of the most vocal GOP critics has been George Radanovich, who is running for an Assembly seat in a district that borders Arambula's. He called the proposal "beyond irresponsible."

Supporters of the bill, including state Senators Dave Min and Scott Wiener, have countered that undocumented immigrants participating in the program would be contributing to their communities. "These are people who are working and paying taxes, and yes, they should be able to buy a home," Wiener said. "They should be part of this program."

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