Summary

Cuts off a state’s eligibility for federal student financial aid (Title IV) if the state offers in‑state tuition to individuals who are not lawfully present in the U.S. at the same or a lower rate than resident U.S. citizens. States would have to change their tuition policies or risk losing Pell Grants, federal student loans, and work‑study funds for students attending schools in that state. It also updates wording in existing law and adds definitions for key terms like who is “lawfully present,” to guide how the rule is applied.

Key Points

• Conditions a state’s access to Title IV student aid on its tuition policy for individuals not lawfully present in the U.S.
• If a state offers in‑state tuition to such individuals at the same or lower rate than resident citizens, the state becomes ineligible for Title IV funds.
• Applies statewide, affecting all institutions and students relying on federal aid in that state.
• Clarifies key terms by adding definitions (e.g., “not lawfully present”).
• For compliance, states may need to verify immigration status in tuition decisions.
• Creates a strong financial incentive for states to change existing in‑state tuition policies for undocumented students.
• Could alter affordability and access for undocumented students if states raise their tuition classification.
• Updates wording in existing law to align with the new enforcement mechanism.

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