California Democratic Governor Gavin Newsom vetoed a bill last week that would have allowed illegal aliens to access state homeownership funds, referencing the costs of such an expansion.

The bill would have specified that all applicants for loans backed by the California Housing Finance Agency could not be disqualified because of their immigration status. Newsom said in a veto message sent to members of the California State Assembly that the “finite funding available” for the California Housing Finance Agency initiatives means that “expanding program eligibility must be carefully considered within the broader context of the annual state budget.”

The legislation would have allowed illegal aliens to access the California Dream for All initiative, which offers 20% down payment assistance for as much as $150,000. The only interest paid by the homeowner would be either 15% or 20% of any appreciation upon sale of the property.

The veto could be overturned by two-thirds majorities in the California State Assembly and the California State Senate, both of which overwhelmingly approved the bill last month.

Members of the California Senate Republican Caucus had sent a letter to Newsom urging him to avoid endorsing the legislation since taxpayers in the state “are already struggling to purchase and maintain their homes,” while using the California Housing Finance Agency funds for illegal aliens would especially impact veterans who desire to buy a home with the program.

“This bill would further stretch the limited public resources available to those who are following the law and want to purchase a home,” they wrote. “It would be disgraceful to deny a veteran access to this home purchase assistance after the great sacrifices they have made.”

Newsom has also been criticized for overseeing Medi-Cal, the state health insurance agency of California, covering so-called sex-change surgeries for illegal aliens through an expansion that entered into effect this year. Medi-Cal published a memo last year saying that “gender-affirming care” is available ”when medically necessary,” a term defined by state law as procedures “reasonable and necessary to protect life, to prevent significant illness or significant disability, or to alleviate severe pain through the diagnosis and treatment of disease, illness or injury.”