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Gov. Gavin Newsom vetoed a bill on Friday that would have made some undocumented immigrants eligible for up to $150,000 in state-backed home loans, rejecting a proposal that ignited criticism from the right as immigration has become a major tension point in the election.

The Democratic governor’s veto comes a day after former President Donald Trump said he would ban undocumented immigrants from receiving home mortgages if he returns to the White House. It also takes the issue off the table ahead of Vice President Kamala Harris’ first scheduled debate against Trump next week. Karoline Leavitt, a Trump campaign spokesperson, described the California bill last month as “fundamentally unfair but typical Democrat policy.”

Newsom cited funding concerns in his veto message.

“Expanding program eligibility must be carefully considered within the broader context of the annual state budget to ensure we manage our resources effectively,” the governor wrote.

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