California Democrats are making a push to expand a state home loan program to illegal immigrants by barring the California Housing Finance Agency from discriminating in loan applications based on the applicant’s immigration status.

Assembly bill 1840, authored by state assemblyman Joaquin Arambula, would strike a requirement from the current loan program that applicants be American citizens. 

A summary of the legislation from state house Democrats says that “an applicant under the program shall not be disqualified solely based on the applicant’s immigration status.” The “goal” of the legislation is ultimately to spend up to $1 billion annually for these loan programs.

The California Dream for All Program currently offers up to 20 percent of a home purchase price to be used for a down payment and closing costs. The maximum dollar amount that can be taken out by a Californian is $150,000. The “loans” do not accrue interest and must only be repaid to the state when the home is refinanced or sold.

Mr. Arambula, a Fresno Democrat, told the Los Angeles Times that “the social and economic benefits of homeownership should be available to everyone.”

The California Dream for All program began in 2023 and allocated $300 million for these kinds of no-interest loans, and the fund was drained in just 11 days. 
The proposed expansion of taxpayer benefits to illegal migrants comes just weeks after California began offering state-funded healthcare to those who are in the country illegally. That program is meant to benefit 700,000 illegal immigrants currently in the state, and could cost California more than $3.2 billion per year.