Barack Obama's budget has no funding for SCAAP, the State Criminal Alien Assistance Program. That reimburses states for their cost of incarcerating illegal aliens, and it will supposedly save $400 million. And, not funding that program is something that Bush tried to do in each year of his presidency; Congress rebuffed the previous illegal immigration-supporting president's attempts. That "tango" where the program is underfunded by Congress after an attempt to cut is made by the president is described here (from March 2008).

The AFSCME wasn't happy when Bush tried this last year (link), and past quotes in opposition to that Bush attempt from Janet Napolitano and Reps. John Spratt and Gabrielle Giffords (all Democrats) are here.

Back to Obama's attempt to do the same thing, this quotes Sen. John Cornyn:

"Forcing state governments to pick up the tab for federal government's failures doesn't save Texas taxpayers one dime."

Sen. Kay Bailey Hutchison says Obama's actions are "outrageous" (link).

Sen. Dianne Feinstein says this:

"[Obama's actions deprive] communities of critical funding for public safety services... We cannot afford to let our public safety services crumble under the weight of our immigration policies, especially during this time of economic uncertainty."

UPDATE: A letter demanding funding for SCAAP has been signed by 12 Democratic and five Republican members of Congress (link).