The Trump administration is shutting down a Clinton-era loophole that allowed illegal aliens to access federally funded tuition programs, declaring that taxpayer-funded education benefits must be reserved for American citizens and legal immigrants.
The Department of Education announced this week that it will no longer honor an exemption that permitted illegal aliens to participate in career, technical, and adult education programs funded by the federal government. The move, grounded in the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), reverses decades of policy.
“For too long, this misinterpretation of the law allowed taxpayer dollars to be funneled toward individuals who have no legal right to be in the country,” said Education Secretary Linda McMahon. “Under President Trump’s leadership, we are restoring integrity to federal education programs and putting American citizens first.”
The 1996 welfare reform law, signed by President Bill Clinton, restricted access to federal benefits—including education assistance—to U.S. citizens, lawful permanent residents, and a narrow category of qualified aliens. But in the years following its passage, the Clinton administration carved out exemptions for certain postsecondary education programs, a move the Trump team now calls legally unsound.
The Department’s new guidance states that previous exemptions “mischaracterized the law by creating artificial distinctions between federal benefit programs based on the method of assistance,” arguing that any federal funding, whether direct or indirect, must comply with PRWORA.
The change will take effect on August 9, 2025, and requires education providers receiving federal funds to verify the legal status of all participants in federally supported career and adult education programs.
This crackdown comes as part of a broader Trump administration effort to end federal support for illegal immigration. On June 30, the Department revoked nearly $7 billion in grants, some of which were being used to fund English-language learning and “diversity” programs that the administration called “vehicles for a radical left-wing agenda.”
While some left-leaning districts continue to provide services to illegal aliens and shield them from federal enforcement, the Trump administration has signaled zero tolerance for jurisdictions that defy federal immigration law.
“This is about fairness,” McMahon said. “American families should not be forced to fund educational benefits for individuals who violated our nation’s laws to be here. That era is over.”