This may be the first step to get the focus on the word "illegal" again, and might lead to other laws, such as not providing schooling to people who are not residents. And someone here illegally could be determined NOT to be a resident. Cool.
Could you imagine the pregnant illegal, going in to have her baby, and being explained to in Spanish, "This is your obstetrician. He will deliver your baby for free. This here is your pediatrician. He will make sure your baby is healthy, for free. And here is your immigration control officer. He will escort your baby back to Mexico for free."
No, not according to the story. It says that only children of citizens or resident aliens would be citizens. Since tourists don't have residency - they're expected to leave within a certain time frame - their children born here would not qualify.