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New Plan by US Govt to Stop College and University Funding for Select Students

Annah Nanjala WekesabyAnnah Nanjala Wekesa
March 17, 2026
Reading Time: 3 mins read
Jan. 6 Officers Sue Trump Over $1.8B Compensation Fund

U.S. President Donald Trump. PHOTO/ White House

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The United States (US) government has unveiled a new legislative proposal designed to stop federal funding for public colleges and universities that provide in‑state tuition or state‑funded financial aid to certain groups of non‑citizens.

Crowned the American Students First Act, the bill seeks to ensure that American citizens are prioritised in higher education support, sparking a fresh wave of debate over immigration policy and access to public universities.

US Rep Nancy Mace Pushes Bill to Cut Funding for Colleges Aiding Illegal Immigrants

Republican Rep. Nancy Mace of South Carolina, who is the sponsor of the bill, wants the United States to block federal funding for colleges offering in-state tuition or financial aid to undocumented immigrants.


Also Read: Trump’s Message to Unpaid Workers as Schumer and Jeffries Face the Heat in DHS Funding Standoff


This bill bars federal financial assistance from going to state public institutions of higher education if the institution offers certain benefits to non-U.S. nationals (aliens under federal law) who are not lawfully present in the United States.

Specifically, these institutions may not offer these individuals (1) tuition rates that are lower than or equal to rates for in-state residents who are U.S. citizens, or (2) state-based financial aid.

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The Congresswoman stated that they introduced the American Students First Act to stop public colleges and universities from giving in-state tuition or state-funded financial aid to undocumented immigrants, while American students are forced to pay more.

She added that if a college, university, or institution chooses to prioritize illegal immigrants over American citizens, it should not receive a single dollar of federal funding.

“Any institution choosing to prioritize illegal aliens over American students deserves to be completely cut off from federal funding,” reads part of the bill.

‘If a school wants to reward illegal immigration, they can do it without a single dime of federal taxpayer money.”

A public college or university will be ineligible for federal funding if it:

  • Charges illegal immigrants in-state tuition – If an institution offers tuition rates to illegal immigrants equal to or lower than those charged to legal state residents.
  • Provides state-based financial aid to illegal immigrants – If an institution grants state-funded scholarships, grants, or other financial aid to individuals not lawfully present in the U.S.

Nancy Mace and her colleagues want to amend Section 505 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 to prohibit the provision of federal financial assistance to public institutions of higher education that offer certain benefits to aliens who are not lawfully present in the United States, among other objectives.


Also Read: Kenya Ranked Fourth in Overall African Startup Funding, Beats Nigeria in Three Key Sectors

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Ineligible institutions: Any public college or university that charges undocumented students tuition at a rate less than or equal to what U.S. citizens pay for in-state tuition, or provides state-based financial aid to students not lawfully present, would be deemed ineligible for federal funds.

Republican Rep. Nancy Mace Of South Carolina
Republican Rep. Nancy Mace of South Carolina
Tags: Nancy MaceUS
Annah Nanjala Wekesa

Annah Nanjala Wekesa

Annah Nanjala Wekesa is a journalist at The Kenya Times, with a passion for crafting news-worthy stories that leave a lasting impact. She holds a Bachelor of Arts in Communication and Media from Kisii University. She has honed her skills in the art of storytelling and journalism. Her passion lies in the art of storytelling that resonates with audiences, driving a commitment to delivering news-worthy stories through the lens of integrity and precision. She can be reached at [email protected]

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