California bill that would give undocumented first-time homebuyers funds despite budget deficit advances

California lawmakers voted a bill through the state Senate on Tuesday that would allow illegal immigrants to apply for their "California Dream for All" first-time homebuyers' financial assistance program.

AB 1840 requires the California Housing Finance Authority's home purchase assistance program, or California Dream for All Program, to include undocumented applicants. 

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The California Dream for All program passed despite funds running out just 11 days after being instituted in June, which awarded 1,700 first-time homebuyers at the time. Finding more funding for the program was the prime concern in floor debate.

A spokesman for California's Department of Finance confirmed to KCRA 3 on Tuesday that the California Dream for All has no money left to supply the program.

The program awards first-time homebuyers up to 20% of a home's value or up to $150,000 as down payment assistance. The bill now heads back to the California state Assembly to go over revisions made by the state Senate.

If passed, the bill heads to California Governor Gavin Newsom's desk to sign into law. 

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The bill passed by 12 votes, following party line at 23-11. Some Democrats present did not vote.

Democrats who supported the bill said in debate that undocumented immigrants who apply for the program must pay taxes and show proof of work; Republicans criticized the bill for potentially edging out groups like veterans from the California Dream for All Program.

No funds were appropriated for the Calfornia Dream for All Program this year due to an expected budget shortfall for 2024-2025. Both the governor and state legislatures must approve of appropriating funds in the future to continue the program.

California state's 2024 legislative session closes after 11:59 PM on Saturday.

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The California Department of Finance did not immediately respond to Fox News Digital's request for comment.