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California college students without legal immigration status still cannot work at public colleges and universities after Gov. Gavin Newsom again vetoed a bill Sunday that would have given them that right. 

Assembly Bill 713 would have adopted an untested legal theory that argues that a 1986 federal law barring employers from hiring workers in the country without authorization doesn’t apply to state governments. The logic? That 40-year-old law doesn’t mention state governments as a type of employer that cannot hire workers without proper status.

But for the second time in three years, Newsom decided that adopting that theory for California would expose the state’s higher-education system to the wrath of the federal government.

“The current federal government has shown it is quick to wreak destruction for political spectacle — attacking California’s public higher education institutions and terrorizing immigrant communities, including students, with reckless disregard for consequences and a desire for chaos,” Newsom wrote in his veto message. 

He added: “But given the gravity of this bill’s consequences — including potential criminal and civil liability for state employees — the federal courts must resolve the legality of the novel legal theory behind this legislation before we proceed. Seeking declaratory relief in federal court would provide such clarity.”

Newsom vetoed a nearly identical bill in 2024.

The latest bill by Assemblymember José Luis Solache, a Democrat from Lakewood, was meant to allow the estimated 60,000 students without legal immigration status at California’s community college and public universities to earn paychecks safely on campuses instead of working for cash under the table. Backers of the bill say campus jobs could be tailored to fit the students’ academic schedules or align with the research interests, such as employment in labs.

Campus jobs are a key way these students can afford college given that they are ineligible for federal Pell grants — up to $7,400 annually — and federal student loans that come with more borrower protections than ones offered by private lenders. California provides eligible in-state students tuition waivers regardless of their immigration status, so many of them can at least attend a public institution tuition-free.

“While California has a longstanding commitment to expanding access, affordability, and student success in higher education, our undocumented students continue to face significant financial and structural barriers,” Solache said at a bill hearing in June.

The University of California itself abandoned its review of employing students without legal status in 2024 out of fears that the federal government could punish the system by withholding federal money or prosecuting UC personnel.

That decision gutted a coalition of students who led the campaign to persuade the UC to voluntarily adopt the legal theory allowing them to work. 

After Newsom vetoed the 2024 bill, a student and former lecturer at the UC sued the system. A state appellate court ruled that UC’s argument that the federal government might sue the system was an abuse of discretion under the state’s law that bans employment and housing discrimination. The court said UC’s policy of not hiring students without legal status was legally indefensible unless it can show that federal law requires the UC to continue its policy of not hiring undocumented students. The UC appealed, but the state Supreme Court let the appellate ruling stand. Still, the court ruling was silent on the soundness of the legal theory that the state can hire workers without legal status.

Newsom’s veto message indicated that a federal court must weigh in on the legal theory before California can adopt  a law such as Solache’s.

CalMatters is a Sacramento-based nonpartisan, nonprofit journalism venture committed to explaining how California's state Capitol works and why it matters. It works with more than 130 media partners throughout the state that have long, deep relationships with their local audiences, including Embarcadero Media.

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