The Debt-Free College Act of 2026 establishes federal-state partnerships to allow students to earn degrees from in-state public colleges without student debt by having the federal government grant states funds to cover unmet financial need after other aid is applied. The bill creates a Partnership Office within the Department of Education to administer the program, requiring participating states to freeze tuition increases at inflation levels, maintain or increase higher education funding, and provide student support services like advising and child care. A companion grant program provides funding directly to historically Black colleges and universities, tribal colleges, and minority-serving institutions where at least 35% of students receive Pell Grants, with 95% of funds used to eliminate student debt. Additionally, the legislation extends federal student aid eligibility to undocumented immigrants who arrived as children (DREAMers), including those with DACA status or military service. Federal funds would be distributed based on each state's existing higher education spending, with states required to prioritize covering costs for Pell Grant recipients and other low-income students first.