New Rule Ends Decades-Old Policy, Prioritizing U.S. Citizens for Federal Postsecondary Programs
In a significant policy shift, the U.S. Department of Education announced today, July 10, 2025, it will no longer permit taxpayer funds to subsidize postsecondary education for undocumented individuals.
This move, championed by the Trump administration, effectively rescinds a Clinton-era interpretation that allowed non-qualified individuals access to federal public benefits in career, technical, and adult education programs.
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U.S. Secretary of Education Linda McMahon stated, “Postsecondary education programs funded by the federal government should benefit American citizens, not illegal aliens.”
She emphasized that 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.” The Department will now ensure funds are “reserved for citizens and individuals who have entered our country through legal means who meet federal eligibility criteria.”
The interpretive rule, published today in the Federal Register, clarifies that federal programs like those under the Carl D. Perkins Career and Technical Education Act (Perkins V) and the Adult Education and Family Literacy Act (AEFLA) are indeed “federal public benefits” subject to the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). This 1996 act generally limits eligibility for such benefits to U.S. citizens, permanent residents, and certain “qualified aliens.”
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This action also reinforces that Higher Education Act (HEA) programs, including Pell Grants and student loans, remain inaccessible to undocumented immigrants.
The Department’s notice reminds grantees and subgrantees of their responsibility to verify participant eligibility, ensuring that “limited federal funding is not being improperly distributed to noneligible individuals or used to support programs and services that serve illegal aliens.” This initiative directly responds to President Trump’s Executive Order 14218, titled “Ending Taxpayer Subsidization of Open Borders.”
The move specifically targets and rescinds a portion of a November 1997 “Dear Colleague Letter” from the Clinton Administration, which, according to the Department, “erroneously exempted career, technical, and adult education programs from being subject to PRWORA.” The Department asserts that this previous interpretation “mischaracterized the law by creating artificial distinctions between federal benefit programs based upon the method of assistance,” a distinction not made by Congress in PRWORA.
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The Department will send letters to all Perkins V, AEFLA, and HEA grantees to discuss the updated eligibility verification requirements. While interpretive rules are not immediately binding and do not have effective dates, they represent the Department’s current position and will be referenced in enforcing compliance with PRWORA. The Department does not currently plan to take enforcement actions against grantees or subgrantees under PRWORA before August 9, 2025.
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