Republicans in California are raising alarms over a newly passed bill that would allow illegal immigrants to receive up to $150,000 in taxpayer-backed home loans.

The controversial legislation offering the sizable amount of loan assistance, Assembly Bill 1840, passed the Democrat-led California legislature on Wednesday, drawing sharp criticism from Republican lawmakers who argue that the bill could exacerbate both the state's housing and border crises, as National Review reports.

The bill's future remains uncertain as Gov. Gavin Newsom has yet to sign it, and even if it becomes law, the program currently lacks the necessary funding.

California Dream For All Program Faces Funding Issues

Assembly Bill 1840 specifically prohibits discrimination based on immigration status in the California Dream for All home loan program.

The program, initially aimed at providing loans to the so-called Dreamers -- illegal immigrants with Deferred Action for Childhood Arrivals (DACA) status -- would extend eligibility to other undocumented residents if the bill is signed into law.

To qualify for the loans, borrowers must meet Federal National Mortgage Association standards. This includes having either a valid Social Security Number or an Individual Taxpayer Identification Number.

The program is designed to offer loans to assist with down payments or closing costs for first-time homebuyers. However, participation in the program is not guaranteed, as eligible borrowers are selected through a random lottery system.

Initial Funding Quickly Depleted

The California Dream for All program initially received $300 million in funding, which was depleted in just eleven days due to high demand. An additional $200 million was later injected into the program, but this amount was also exhausted within the same time frame in June. Due to the rapid depletion of funds, the California Housing Finance Agency is not currently accepting new applications, casting further doubt on the program's future viability.

Republican leaders have voiced their concerns that the bill does nothing to address the underlying issues of the state's housing crisis. "I didn’t know it was possible to make a border crisis and the housing crisis worse with just one vote, but Democrats found a way," California Assembly Republican leader James Gallagher stated on X (formerly Twitter) on Thursday.

Critics Argue Bill Perpetuates Inequality

Democrat state assemblyman Joaquin Arambula, who sponsored the bill, defended it by arguing that limiting access to homeownership assistance programs perpetuates inequality. "The social and economic benefits of homeownership should be available to everyone. As such, the California Dream for All program should be available to all," Arambula said.

Despite the intention behind the bill, critics remain unconvinced. Republican assemblyman Bill Essayli described the bill as "offensive" on X, adding that "California Democrats love illegal immigration so much they offer many incentives for them to come here." Assemblywoman Kate Sanchez echoed these sentiments during the floor debate, arguing, "This is not rocket science. If you’re giving out free stuff, more people are going to come."

Program's Impact on Housing Market Raises Concerns

Critics of the bill also argue that the program could worsen the already challenging housing market in California. The median home price in the state surpassed $900,000 earlier this year, according to data from the California Association of Realtors. Some argue that the program could lead to higher home prices by increasing demand without addressing the supply side of the equation.

Republican state senator Brian Jones warned that this "unfair policy sends a dangerous message: 'Come here illegally & claim your $150,000 home loan!'" X owner Elon Musk also weighed in, sarcastically tweeting, "Seems like half of Earth should move to California, given all the incentives to do so."

Newsom's Decision Remains Unclear

As the bill awaits Newsom's signature, its future remains uncertain. If signed into law, the program may continue to face significant hurdles due to its current lack of funding. With no new funds allocated and the existing funds already depleted, the California Housing Finance Agency's ability to administer the program is in jeopardy.

The bill has also sparked a broader debate about the priorities of California's government. "Welcome to California, where illegal immigrants get free health care, free food, and now a free home with 0 percent down," Assemblywoman Sanchez remarked during the debate. The tension between addressing housing inequality and managing the state's resources is likely to continue as the bill moves forward.

Conclusion

In summary, the passage of Assembly Bill 1840 has ignited a fierce debate in California over the state's housing and immigration policies.

While proponents argue that the bill promotes equality by extending homeownership opportunities to all, critics warn that it could exacerbate existing crises and strain the state's resources.

As Governor Newsom weighs his decision, the future of the program -- and the broader implications for California -- remains uncertain.