PolicyBrief
H.R. 2490
119th CongressMar 31st 2025
No In-State Tuition for Illegal Immigrants Act
IN COMMITTEE

The "No In-State Tuition for Illegal Immigrants Act" prohibits states from receiving federal financial aid for higher education if they offer in-state tuition rates to individuals not lawfully present in the United States.

Tim Burchett
R

Tim Burchett

Representative

TN-2

LEGISLATION

Bill Ties Federal College Aid to States Ending In-State Tuition for Undocumented Students

This bill, the "No In-State Tuition for Illegal Immigrants Act," gets straight to the point: it aims to change how states handle tuition costs for students who aren't lawfully present in the U.S. Specifically, it amends Section 505 of a 1996 immigration law. The core change? If a state offers in-state tuition rates to undocumented students, it becomes ineligible for federal financial aid provided under Title IV of the Higher Education Act of 1965 during the next fiscal year.

The Funding Connection: How It Works

Think of Title IV funding as the main pipeline for federal student aid – this includes things like Pell Grants and federal student loans that many rely on to afford college. Section 2 of this bill essentially says states have a choice: either stop offering the lower, in-state tuition rates to undocumented residents, or potentially lose access to these crucial federal funds for all their eligible students and institutions. The bill is clear: offer the rate, lose the federal dollars the following year. There isn't much grey area here; the link between state tuition policy and federal funding eligibility is direct.

Real-World Ripple Effects

So, who feels this? First, undocumented students in states currently offering them in-state rates would likely face significantly higher tuition costs, potentially putting college out of reach. Second, state governments would be forced into a tough spot, weighing their desire to set their own tuition policies against the risk of losing substantial federal funding that supports their higher education system. This could also impact colleges and universities, potentially affecting enrollment numbers and their overall budgets if federal aid streams are disrupted. It essentially uses federal financial leverage to influence state-level decisions on higher education access for this specific group.

Federal Strings on State Decisions

This legislation highlights the ongoing dynamic where the federal government uses funding conditions to shape state policies. By tying Title IV funds – a major source of support for higher education nationwide – to a specific state-level tuition policy regarding undocumented immigrants, the bill aims to create a uniform standard across the country. States that currently have policies allowing in-state tuition for these individuals would need to reassess their approach or prepare for the financial consequences outlined in the bill.