New Bill Ties College Federal Funding to E-Verify Use and Immigration Compliance

This proposed legislation, the "College Employment Accountability Act," introduces new rules for colleges and universities regarding immigration law and employment verification. In short, it mandates that institutions of higher education use the E-Verify system to check the work authorization status of their employees. Critically, it links compliance with this requirement, and with existing laws against hiring unauthorized workers, directly to their eligibility for federal student aid and institutional funding.

The New Campus Gatekeeper: E-Verify Moves In

The core change here is the mandatory participation in the E-Verify Program for all higher education institutions (SEC. 3). E-Verify is a federal electronic system run by U.S. Citizenship and Immigration Services (USCIS) that allows employers to confirm if someone is legally eligible to work in the United States. The Department of Homeland Security (DHS) is tasked with checking every six months to see if colleges are actually using the system (SEC. 4). If DHS finds an institution isn't participating, or if it determines the institution has violated Section 274A of the Immigration and Nationality Act (the part dealing with unlawfully employing unauthorized individuals), it must notify the Department of Education within 10 days.

Pay to Play: Federal Funding on the Line

Here’s where it gets serious for both schools and students. If an institution is found to be out of compliance – either by not using E-Verify or by employing unauthorized workers – it becomes ineligible to receive federal student assistance or federal institutional aid (SEC. 2). This isn't just a slap on the wrist; it could mean losing access to major funding streams that support Pell Grants, federal student loans, work-study programs, and direct institutional grants. The real-world impact? If a college loses this funding, it could significantly affect its budget and potentially make attending that school much harder, or impossible, for students who depend on federal financial aid.

Beyond the Bottom Line: Ripple Effects and Hurdles

While the goal is likely to ensure compliance with immigration employment laws on campus, the implementation raises practical points. Colleges will face the administrative task of integrating E-Verify into their hiring processes (SEC. 3). There's also a concern, noted in similar contexts, that mandatory E-Verify could inadvertently lead institutions to be overly cautious, potentially resulting in discriminatory hiring practices if they shy away from candidates perceived as complex cases, even if legally authorized to work. The most significant potential fallout, however, remains the funding cutoff (SEC. 2), which could disproportionately affect institutions serving large numbers of low-income students who rely heavily on federal aid.