Overall Vote Recommendation

Yes

Principle Criteria

Free Enterprise

Property Rights

Personal Responsibility

Limited Government

Individual Liberty

Digest

SB 1798 proposes significant changes to how Texas public institutions of higher education manage state-funded financial aid and admissions procedures for individuals who are not lawfully present in the United States. The bill mandates that these institutions ensure no state-appropriated funds are used to provide financial support, such as scholarships, grants, or other forms of aid, to undocumented students. To ensure compliance, institutions must submit an annual report to the Texas Legislature and the Texas Higher Education Coordinating Board certifying adherence to these restrictions. Noncompliance could result in the loss of eligibility for future state funding increases.

The bill also adds a requirement for institutions to verify the immigration or citizenship status of applicants under certain conditions, including those applying for in-state tuition or state-supported financial aid, or those who submit a Free Application for Federal Student Aid (FAFSA) as documentation. If applicants claim U.S. citizenship, they must submit proof such as a birth certificate, passport, or naturalization document. If the applicant is not a citizen, they may still submit a FAFSA to document lawful presence.

Additionally, the bill tasks the State Auditor with conducting periodic compliance audits of institutions, with a mandate to audit each institution at least once every four years. If a violation is identified, the institution has 180 days to correct the issue or risk losing access to increased formula funding or enhancement appropriations in the following budget cycle.

SB 1798 represents a shift in higher education policy by tying institutional funding to immigration-related compliance and placing administrative burdens on both schools and students regarding verification and reporting practices.

The Committee Substitute for SB 1798 builds upon the originally filed version by expanding the administrative and compliance framework surrounding immigration status and state-supported financial aid at Texas public institutions of higher education. While both versions seek to prohibit state funding from being used to support students who are not lawfully present in the United States, the substitute version introduces a more comprehensive structure for enforcement and verification.

A key difference is the inclusion of a new section requiring institutions to verify the immigration or citizenship status of students applying for in-state tuition or state-funded financial aid. The Committee Substitute outlines specific types of documentation that students must provide, such as birth certificates or immigration records, which the original bill did not address. This change reflects a more proactive and procedural approach to enforcing the bill’s intent, rather than relying solely on post-audit compliance.

Additionally, the Committee Substitute strengthens oversight by requiring institutions to testify before relevant legislative committees during the interim periods between sessions, further reinforcing accountability. It also refines enforcement measures by clearly stating when funding penalties will be imposed for violations, and by aligning the timeline of reporting requirements with state fiscal years and legislative sessions. These enhancements provide clearer mechanisms for both compliance and consequences, compared to the broader, more general language in the filed bill.

Structurally, the substitute reorganizes and elaborates upon the legal text to improve clarity and enforceability. It transitions from a narrowly focused financial aid prohibition to a more comprehensive policy framework that includes documentation, reporting, legislative engagement, and auditing standards. These refinements collectively signal a shift from a punitive approach to a systematic compliance regime.

Author

Mayes Middleton

Charles Schwertner

Co-Author

Donna Campbell

Brent Hagenbuch

Bob Hall

Joan Huffman

Bryan Hughes

Phil King

Lois Kolkhorst

Contact the Author

Sen. Mayes Middleton

Capitol Phone:

(512) 463-0111

Capitol Office:

EXT E1.706

E-Mail:

[email protected]

Visit Official Website

Fiscal Notes

According to the Legislative Budget Board (LBB), SB 1798 would have no significant fiscal impact to the State of Texas. The bill's implementation—while requiring additional administrative tasks such as immigration status verification, institutional reporting, and compliance audits—is not expected to result in costs that exceed existing resources. This means that state agencies and higher education institutions would likely be able to manage the requirements of the bill within their current budgets and staffing levels.

Similarly, the bill is not projected to impose significant costs on local government units. Public institutions of higher education, which may face operational adjustments due to the bill, such as the need to verify documentation and respond to audits, are considered capable of absorbing these changes without requiring additional state appropriations or passing on new costs to students or taxpayers.

While the bill may create administrative burdens, particularly in tracking compliance and managing tuition reclassifications, these are considered manageable within the institutions’ current fiscal and operational structures. However, it is worth noting that the fiscal note does not account for potential secondary impacts, such as changes in enrollment patterns or revenue shifts related to students losing eligibility for in-state tuition or state aid. Those indirect effects, while outside the scope of the fiscal note, could still influence institutional budgets over time.

Vote Recommendation Notes

SB 1798 seeks to align Texas residency classifications and access to state-funded higher education benefits with federal immigration laws. It prohibits public institutions of higher education from awarding state-funded financial aid to individuals who are not lawfully present in the United States and eliminates in-state tuition eligibility based on high school attendance alone for undocumented students. The bill introduces institutional reporting requirements, mandates immigration status verification during admissions and financial aid processing, and establishes audit procedures to ensure compliance.

Supporting SB 1798 affirms a policy framework that prioritizes the responsible use of taxpayer funds and enforces clear eligibility standards based on lawful presence. The bill responds to ongoing public concerns that state-supported benefits, such as in-state tuition and financial aid, should be preserved for citizens and those residing in Texas under lawful immigration status. From this perspective, SB 1798 upholds fiscal accountability by ensuring that state money does not subsidize individuals who are not legally permitted to reside or work in the country.

The bill also strengthens institutional oversight without imposing significant fiscal burdens. According to the Legislative Budget Board, the required audits, documentation procedures, and reporting mechanisms can be absorbed with existing resources. Institutions are already accustomed to federal compliance protocols through systems like FAFSA and SEVIS; SB 1798 extends similar practices to state-level benefits, offering uniformity and legal clarity. By conditioning future state appropriations on compliance, the bill ensures meaningful enforcement while preserving institutional flexibility.

Concerns about potential educational disruption for long-time Texas residents brought to the U.S. as minors are valid, but must be weighed against the state’s broader obligations to maintain fair and consistent policies across all public institutions. SB 1798 does not bar undocumented students from attending college; rather, it clarifies that access to discounted tuition and state aid is reserved for those who meet legal eligibility criteria. It also protects public trust by closing perceived loopholes and aligning state policy with federal immigration enforcement.

By restoring focus to lawful residency and institutional accountability, SB 1798 strengthens the credibility of Texas’s higher education system and affirms the state's discretion to define the terms under which public benefits are granted. These changes are not only fiscally sound but also reflective of the principle that public resources should serve those who comply with the legal frameworks of the state and nation. As such, Texas Policy Research recommends that lawmakers vote YES on SB 1798.

Individual Liberty: The bill seeks to preserve the rights of taxpayers—lawfully present individuals—by ensuring that public funds are not used to subsidize the education of those who are not legally present in the country. It reinforces the idea that liberty is tied to the rule of law: one must participate in society through lawful means to access state-provided benefits. Critics argue that the bill restricts liberty for undocumented students brought here as minors. However, the bill does not prohibit them from enrolling in college or seeking private aid, it merely clarifies that in-state tuition and taxpayer-funded aid are privileges contingent on legal status. This is a reasonable boundary in a lawful society.
Personal Responsibility: The bill reinforces the notion that individuals and families must take personal responsibility for their legal status and educational planning. It expects that recipients of public benefits comply with established legal frameworks. In a broader sense, the bill incentivizes lawful immigration pathways as a prerequisite for accessing subsidized education, reinforcing individual accountability.
Free Enterprise: While access to education fosters economic participation, the bill doesn't limit anyone's ability to pursue education privately or through unsubsidized channels. The bill ensures that market-based principles are respected by avoiding artificial state subsidies for individuals outside the legal framework, which could otherwise distort the education market.
Private Property Rights: The bill does not affect land ownership, eminent domain, or business regulation in a way that implicates private property rights.
Limited Government: Although the bill imposes administrative requirements on universities, it arguably promotes limited government by restricting the state’s financial role in areas it was never explicitly intended to support. It prevents state institutions from extending benefits beyond what the statute and federal law allow. By enforcing clearer boundaries on state spending, the bill enhances legislative control over appropriations and limits mission creep in higher education policy.

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