Lawmakers in the Golden State approved a first in the nation proposal 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 senate approved the measure today known as the “California Dream for All” loan program (Assembly Bill 1840). Under this program, the state would provide 20 percent in down payment assistance, totaling up to $150,000, for illegal immigrants looking to buy their first home.

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,” state Senator Brian Dahle said to local news outlet, 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. …The people who need a little help will get less.”

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.”

State Senator Brian Jones also weighed in.

“California’s budget deficit continues to grow, and 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,” he said.

The bill, which was recently renamed the “Home Purchase Assistance Program,” was first introduced at the beginning of 2024 by 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, according to The California Globe.

“The social and economic benefits of homeownership should be available to everyone. 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.”

Governor Newson has kept mum on whether he intends to sign the bill into law. It has been speculated that his silence could be due to the potential for backlash against him and Democratic presidential candidate Kamala Harris 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 Newsom’s office Monday. “If the bill reaches his desk, the Governor will evaluate it on its merits.”

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.

“And if he 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, said to 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 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.”