California lawmakers are one step closer to making hundreds of millions of dollars in taxpayer-funded home loans available to residents living in the country illegally.

Democrats on the California Senate Appropriations Committee unanimously approved moving AB1840 forward on Thursday. According to The official vote tally for the bill. The bill has one last chance to die in the Democratic-controlled Senate before it reaches Gov. Gavin Newsom's desk. (Related story: California taxpayers foot the six-figure bill for photographer to shoot president after Governor Newsom)

The bill seeks to amend the California Dream for All Shared Appreciation Loan. programThe California Housing Act, an initiative launched last year to offer first-time homebuyers loans of up to 20 percent of a home's purchase price for down payments or closing costs, would make some illegal immigrants in California eligible to apply if it passes and is signed into law.

“Once again, California has chosen to put illegal immigration and fiscal irresponsibility above the needs of its residents, and now we're facing a $60 billion deficit that will ultimately be passed on to taxpayers,” San Diego County Supervisor Jim Desmond said in a statement provided to the Daily Caller News Foundation.

“California is in dire financial straits, yet lawmakers continue to prioritize programs that encourage illegal immigration and strain local resources,” Desmond continued. “Extending this program to illegal immigrants is not just a handout; it is a significant overreach that shifts a financial burden onto law-abiding taxpayers.”

The taxpayer-funded mortgages are interest-free and borrowers are not required to make monthly payments, making the program extremely popular with California residents.

Applications for the $300 million program opened in May 2023 to provide interest-free loans to about 2,300 low- and moderate-income homebuyers, but the funds ran out less than two weeks later. According to State officials have since tightened the program's eligibility requirements, requiring at least one applicant to be a first-time homebuyer and changing the first-come, first-served model to a lottery, according to the LA Times.

One state lawmaker felt the loan program wasn't comprehensive enough, even though availability for the program was already extremely tight as California struggles to address a tens of billions of dollars in budget deficits.

Fresno Democratic Rep. Joaquin Arambula was the first 1840 In January, he set a goal of expanding the definition of “first-time homebuyer” to include undocumented immigrants, and in March, lawmakers argued that “the social and economic benefits of homeownership should be available to everyone.” According to Arambula did not immediately respond to a request for comment from the DCNF, local news outlet KTLA reported.

This law was later Easy to pass The bill was passed by the Democratic-controlled California Assembly and the Senate Appropriations Committee, with only Republicans voting against it.

“California's budget deficit continues to grow, and Democrats in office are so out of touch with ordinary Californians that they are literally taking funds away from law-abiding citizens — their own constituents — and giving them as a free gift to people who break federal law and cross the border illegally,” California Sen. Brian Dahl told DCNF.

“There is no accountability or transparency when it comes to the Democratic spending surge. It's unfortunate that at this point, homeownership is merely an illusion for many Californians,” Dahle continued.

California Governor Gavin Newsom speaks to reporters in the Spin Room after the FOX Business Republican Primary Debate at the Ronald Reagan Presidential Library in Simi Valley, California, September 27, 2023. (Photo by Mario Tama/Getty Images)

California is facing a huge budget shortfall.

The state Legislature approved a budget in June that cut spending and temporarily raised taxes on businesses to close a roughly $50 billion budget deficit. According to The Associated Press. The dire financial picture is a far cry from the more than $100 billion surplus the state enjoyed about two years ago, but that revenue surge proved to be only temporary as rising unemployment, inflation and a slowing tech industry squeezed California's wallet. (Related article: After an immigrant allegedly raped a woman at knifepoint, NYPD's top chief says city's sanctuary policies should disappear)

The state's budget deficit grew from about $32 billion in 2023 to more than $46 billion earlier this year and is now about $60 billion, according to the California Republican Party, raising questions about why lawmakers would open up a coveted loan program to so many residents without legal status.

There are approximately 2 million illegal immigrants living in California. According to The data was released by the Pew Research Center in July.

It's unclear at this time whether Governor Newsom will sign the bill. When reached for comment, a spokesperson said the governor's office typically doesn't comment on pending bills, adding that if a bill reaches the governor's desk, “we will evaluate it on its merits.”

Approval of AB 1840 came after Vice President Kamala Harris' campaign will be announced Her proposals are similar to her home state's current program: $25,000 in down payment assistance for first-time homebuyers and increased support for first-generation homeowners.

It's unclear whether Harris, who has recently sought to position herself as a hard-line border enforcer, would explicitly exclude illegal immigration. Her campaign did not respond to a request for comment from the DCNF.

California Republicans, meanwhile, are balking at legislation in their state.

“Many legal California residents cannot afford to buy a home in their own state,” California Sen. Brian Jones, one of two Republicans on the Senate Appropriations Committee, told DCNF.

“Instead of addressing our housing crisis, Radical Democrats want to use taxpayer dollars to help illegal immigrants buy homes,” Jones continued. “With a $62 billion budget deficit, we need to focus on keeping our vital government functions running, not on unfair political spending on illegal immigrants.”

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