The bill strengthens and enforces federal law prohibiting states from offering in-state tuition rates to immigrants who are not lawfully admitted for permanent residence. Currently, 22 states and the District of Columbia provide discounted tuition to such students, which the bill's sponsors estimate costs taxpayers over $1 billion annually. The legislation requires public colleges to verify every student's immigration status through the federal SAVE program each year and charge out-of-state rates to those not lawfully admitted. If institutions wrongly granted discounted rates, they must seek reimbursement from students for the difference plus interest, or prevent them from enrolling in future terms. The bill also penalizes states that violate these requirements by making them ineligible for federal higher education grants, and requires compliance as a condition for colleges to participate in federal student loan programs. The rules apply to new students starting with the 2026-2027 academic year and to current students once their immigration status is verified.
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