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Jerry Brown at budget forum on Dec. 8

Gov. Jerry Brown signed into law Monday a bill that would provide illegal immigrants who attend state universities and community colleges access to private sources of financial aid.

The narrowly focused measure, AB 130, is one of two bills collectively known as California’s Dream Act. Its passage marks a victory for immigrants’ rights activists and Assemblyman Gil Cedillo (D-Los Angeles), who has attempted to advance similar legislation for years, but regularly encountered Republican Gov. Arnold Schwarzenegger’s veto.

"Thousands of undocumented students will now be able to achieve their own personal dreams with this important legislation, and invest in the future of California," said Cedillo, who appeared Wednesday alongside Brown at a ceremony at Los Angeles City College. "Thank you, Governor Brown, for your vision for the future of California; you did the right thing."

In the case of the flagship University of California system, the bill would offer illegal immigrants a slice of the $45 million pool of undergraduate scholarships funded by private donors and endowments, according to the Los Angeles Times. AB 130 would apply to less than 1 percent of the UC, California State University and community college student populations.

But the meatier, far more controversial half of the state Dream Act, AB 131, would grant undocumented students access to a much larger pot of taxpayer-funded scholarships and financial aid. That bill has not yet been taken up by the state Senate, although Brown, a Democrat, has signaled his support.

Critics have argued that the legislation would legitimize illegal immigration and divert educational funding from citizens at a time of fiscal hardship. Supporters say that if the federal government agrees on a comprehensive immigration-reform plan that includes a path to citizenship, AB 131 would provide opportunities for students who may one day become productive, taxpaying citizens.

Brown promised to support the bill during his campaign for governor last year, which prevailed in large part due to the growing clout of California's Democratic-leaning Latino voters. Cedillo, on Wednesday, praised Brown as a "man of his word."

The California Dream Act is substantively different from the federal Dream Act backed by President Barack Obama. That legislation would provide a path to permanent legal residency for illegal immigrants who arrived in the United States as children and attend college or serve in the military.