Governor Newsom Signs Bill Supporting Immigrant Entrepreneurs, But Leaves Immigrant Student Workers Behind
For Immediate Release
Contact: Beleza Chan at beleza@immigrantsrising.org
Los Angeles, CA (September 23, 2024) – This weekend, Governor Newsom took a bold step in advancing economic opportunities for immigrant entrepreneurs, while simultaneously closing doors for undocumented students at the University of California (UC), California State University (CSU) and California Community Colleges. The move underscores the challenges California faces in supporting its undocumented population while federal leaders fail to enact comprehensive immigration reform.
Governor Newsom signed AB 2543 (Arambula), co-sponsored by Immigrants Rising and the Central Valley Immigrant Integration Collaborative, a bill that enables undocumented entrepreneurs to obtain small business certification. This certification grants access to vital benefits, including bidding preferences and prompt payment on state contracts. Previously, undocumented business owners were excluded from these opportunities, limiting their ability to grow their businesses and depriving the state of innovation, additional productivity and critical procurement opportunities. With Governor Newsom’s signature of AB 2543, undocumented entrepreneurs can now compete on a level playing field, unlocking their potential to contribute more fully to California’ economy.
However, in a contradictory move, Governor Newsom vetoed AB 2586 (Alvarez) which would have granted undocumented students equal access to campus employment opportunities at the UC, CSU and California Community Colleges. Over 82,000 undocumented students are enrolled in a California public college or university, many without Deferred Action for Childhood Arrival (DACA) protections, leaving them ineligible for work authorization. Without campus employment, these students struggle to afford their education, lose out on essential career-building experiences, and, in the long run, are unable to help California’s demand for highly educated workers.
Although legal scholars have determined that the Immigration Reform and Contract Act of 1986 (IRCA) does not apply to state governments acting as employers, which means the UC, CSU and CA Community Colleges can provide employment to undocumented students, Governor Newsom cites potential liability as his motivation to veto AB 2586, and urges the UC to seek declaratory relief in court.
“Thousands of undocumented individuals know no other home but California. Yet, the failure of our federal government to reform immigration policies related to education and employment, have made it difficult or impossible for immigrant communities to thrive and fully contribute to our state and nation’s economy,” said Iliana Perez, Executive Director of Immigrants Rising. “We urge Governor Newsom to sign AB 2543 to ensure fairness, economic growth, and support for all small business owners, regardless of immigration status, as they continue driving California’s economy forward.”
“The signing of AB 2543 marks a significant step forward for undocumented entrepreneurs, giving them the tools to grow their businesses and contribute fully to California’s economy. However, the veto of AB 2586 sends a mixed message to undocumented students who seek equal opportunities to work and build their futures. These students, who are critical to California’s economic future, are left to navigate a system that continues to deny them access to basic employment opportunities. While AB 2543 offers hope for entrepreneurial pathways, the state must ensure that all undocumented individuals — whether business owners or students — are given the chance to succeed. Until that happens, true equity and inclusion remain out of reach for California’s immigrant communities,” concluded Perez.
