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GOP Senators move to cut federal aid for California colleges hiring illegal immigrants

Jacob Shelton March 26, 2025

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May 11, 2017; Los Angeles, CA, USA; A general view of the Annenberg School of Communication and Journalism on the campus of the University of Southern California. The building is the proposed site for the main press center for the 2024 Los Angeles Olympic Games. Mandatory Credit: Kirby Lee-USA TODAY Sports

California – A new bill introduced in Congress is aiming to block federal funding for colleges and universities that hire undocumented workers. The College Employment Accountability Act, sponsored by Sen. Jim Banks (R-Ind.) and Rep. Erin Houchin (R-Ind.), would prevent institutions from receiving federal student aid and other financial support if they fail to comply with hiring laws.

“American jobs belong to Americans. Those who unlawfully hire illegal aliens undermine our workers and drive down wages. This commonsense bill finally adds real consequences to existing law and will help ensure taxpayer dollars don’t support colleges and universities that hire those in our country illegally,” Banks said in a statement.

Under the proposed legislation, any university receiving federal funds would be required to use the E-Verify system to confirm employees’ legal status. The bill would also amend the Immigration and Nationality Act of 1986, tying federal aid eligibility to compliance with hiring laws.

Houchin echoed Banks’ concerns, stating that institutions knowingly employing undocumented individuals should not benefit from taxpayer money. “The College Employment Accountability Act puts an end to this abuse by requiring schools to follow the law or lose access to federal funds. If an institution can’t be bothered to verify the immigration status of its employees as is legally required, it shouldn’t receive the support of American tax dollars.”

The bill appears to be a direct response to efforts in states like California, where university leaders have debated hiring undocumented students for campus jobs. The University of California system previously considered a proposal that would allow undocumented students to work on campus, arguing that state government agencies were not bound by the 1986 immigration law. However, the proposal has faced legal challenges, and in September, California Gov. Gavin Newsom vetoed a similar bill that sought to allow undocumented individuals to be employed in campus jobs statewide.

If passed, the legislation would task the Department of Education and the Department of Homeland Security with tracking and enforcing compliance, ensuring that federally funded colleges adhere to employment laws.

This isn’t the first time Banks has sought to restrict federal funds to colleges based on political and social issues. He recently introduced another bill targeting universities that failed to address encampments related to anti-Israel protests, arguing that institutions should be held accountable for managing campus unrest.

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