State aid for illegal immigrant student programs faces scrutiny

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(The Center Square) - State-funded financial aid programs for illegal immigrant students have come under renewed scrutiny as the federal government tightens restrictions on education benefits for illegal immigrants.

Roughly 17 to 19 states and Washington, D.C., provide some form of financial aid or scholarships to illegal immigrant students who meet residency or high school attendance requirements. 

A 2025 study by the Federation for American Immigration Reform estimated that education costs for illegal immigrants total $5.7 billion nationally, the largest portion of the fiscal impact on state and local budgets. 

Schools face additional challenges supporting students who arrive with limited English proficiency, which can strain resources and affect native students, the report said. 

In July 2025, the U.S. Department of Education rescinded a 1997 Clinton-era guidance, requiring eligibility verification for federal programs such as career, technical and adult education.

“Postsecondary education programs funded by the federal government should benefit American citizens, not illegal aliens,” said Secretary of Education Linda McMahon. “Under President Trump's leadership, hardworking American taxpayers will no longer foot the bill for illegal aliens to participate in our career, technical, or adult education programs or activities." 

Rusty Brown, director of special projects at the Freedom Foundation, said in an exclusive interview with The Center Square that such programs reflect broader political priorities. 

“It's clearly, you know, part of the left's agenda to bring as many illegals as possible in and make sure that they're properly indoctrinated in the schools and that they have voters for life,” Brown said.

At the same time, Brown acknowledged the ethical complexity of denying education to children.  

“You have the moral issue," Brown said. "The kid didn’t bring himself over here. It’s up to the parents. Should he not get an education?”

Brown also raised concerns about the use of taxpayer dollars, emphasizing that public funding is limited and should be prioritized.

“If you’re helping illegal immigrants, then what you’re doing is cutting off funding that could be going to helping American kids - and impoverished school districts,” Brown said. “There should be a focus on America first.”

California’s California Dream Act allows illegal immigrant students and those from mixed-status families to access state aid for public universities, The Center Square recently reported. 

Gov. Gavin Newsom’s office defends the program, highlighting that “undocumented Californians are tax-paying residents.”

California Assemblymember Carl DeMaio, R-San Diego, argues against the act, stating that billions of taxpayer dollars spent on these programs disadvantage U.S. citizens and encourage illegal immigration.

In Colorado, the Colorado Application for State Financial Aid, or CASFA, allows students who do not file a FAFSA to apply for state-funded aid. The program serves illegal immigrant students, Deferred Action for Childhood Arrivals or Temporary Protected Status recipients, international students and mixed-status families.

“When taxpayers express concerns about how public funds are used, the Colorado Department of Higher Education refers to legislation indicating Colorado students who graduate from high school here or earn their high school equivalency here and live here may be awarded state-funded financial aid,” Megan McDermott, chief communications and outreach officer at the Colorado Department of Higher Education, told The Center Square.

Other states with similar programs include Illinois’ Monetary Award Program and New York’s DREAM Act.

The Center Square reached out to these state higher education organizations for comment, but did not receive a response.