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On July 11, 2025, the Department of Education issued a new interpretive rule entitled “Clarification of Federal Public Benefits under the Personal Responsibility and Work Opportunity Reconciliation Act.” The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) generally limits “eligibility for ‘federal public benefits’ to U.S. citizens, permanent residents, and certain categories of qualified aliens.” The Department concluded that certain postsecondary education programs, “including adult education programs authorized under Title II of the Workforce Innovation and Opportunity Act of 2014, [and] postsecondary career and technical education programs under the Carl D. Perkins Career and Technical Education Act of 2006,” constitute “Federal public benefits under the PRWORA and thus are subject to PRWORA’s citizenship verification requirements.”

This new policy, although limited in scope, rests on a novel interpretation of federal law that may have significantly broader implications. In determining that undocumented students are not eligible for certain federal education benefits, the Department disclaimed a 1997 Department of Education “Dear Colleague” letter that had determined PRWORA did not restrict benefits provided by the Department of Education at the preschool, elementary, and secondary levels. Further, the new interpretive rule reads the Supreme Court’s decades-old decision in Plyler v. Doe, 457 U.S. 202 (1981) to hold only that undocumented children are entitled to a “basic public education.” Thus, the interpretive rule concludes, undocumented adults are not entitled to receive any education benefits, and undocumented children are not eligible to receive “postsecondary” or “certain other education benefits” beyond “basic public education.” This would include, the interpretive rule explains, “dual enrollment and other similar early college programs that provide opportunities to earn college level credits while participating in a secondary education program.”

In-State Tuition for Undocumented Students

The new interpretive rule follows on the heels of other actions by the Administration limiting higher education benefits for undocumented students. On April 28, the President issued an executive order entitled “Protecting American Communities from Criminal Aliens” which, among other things, directed the Attorney General and Secretary of Homeland Security to “identify and take appropriate action to stop the enforcement of State and local laws,” including those “that provide in-State higher education tuition” to noncitizens but not to out-of-state American citizens.

Approximately twenty-five states and the District of Columbia currently have laws or policies permitting students who have attended high school in the state for a certain number of years, or who have graduated from high school in the state, to pay the same tuition as in-state residents, regardless of their immigration status. Courts generally have concluded that such laws and policies do not violate federal law where eligibility for in-state tuition is based on secondary school attendance or other factors other than residency. See, e.g., Martinez v. Regents of the University of California, 50 Cal. 4th 1277 (S. Ct. Cal. 2010). But the Administration recently filed lawsuits against Texas and Minnesota seeking to invalidate those states’ laws permitting some undocumented students to pay in-state tuition. Texas immediately repealed its law, while Minnesota thus far appears to be defending its law in court. We expect the Administration to file lawsuits against more states that permit undocumented students to pay in-state tuition at their colleges and universities or that provide such students other education benefits.

The Department intends to send letters to Perkins V, Adult Education and Family Literacy Act, and Higher Education Act grantees discussing eligibility verification, and the Department may take enforcement actions against any grantee or subgrantee under PRWORA after August 9, 2025.

Immigration Enforcement Collides with Education

New immigration policies have underscored the continued collision of educational missions with immigration enforcement efforts, leading to complex questions affecting the day-to-day operations of educational institutions. For example, on President Trump’s first day in office, the Department of Homeland Security (DHS) rescinded a 2021 “Protected Areas Memorandum,” which directed that enforcement actions should, to the “fullest extent possible,” be limited when they are conducted “in or near a location that would restrain people’s access to essential services or engagement in essential activities,” including schools. The new policy contains no such limitation. Instead, it specifies that “bright line rules” are not necessary and requires DHS officers from U.S. Immigration and Customs Enforcement and U.S. Customs and Border Protection to use their discretion in deciding whether to commence enforcement action in formerly protected areas. In short, DHS enforcement actions are no longer subject to formal constraints, significantly increasing the possibility of enforcement actions at or near schools.

Educational institutions are also grappling with members of their communities facing immigration enforcement actions or entry restrictions, conditions on their access to federal funds tied to immigration priorities, and investigations of their immigration-related policies.

Conclusion

Although immigration has always been part of educational institutions’ planning to a certain extent, the speed and complexity of new government policy requires more robust monitoring for relevance and risk mitigation for affected institutions.

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Photo of Sharmistha Das Sharmistha Das

Sharmi Das’ experience at the Department of Homeland Security (DHS), Department of Justice (DOJ), the White House, the U.S. Senate, and private practice positions her to guide clients through regulatory challenges, government-facing issues, and scrutiny from Congress and other oversight bodies. Sharmi has

Sharmi Das’ experience at the Department of Homeland Security (DHS), Department of Justice (DOJ), the White House, the U.S. Senate, and private practice positions her to guide clients through regulatory challenges, government-facing issues, and scrutiny from Congress and other oversight bodies. Sharmi has handled dozens of congressional inquiries and managed a program that developed hundreds of regulatory actions relating to homeland security matters, including technology, cybersecurity, contracts and grants, intelligence, health, and immigration. She participated in hundreds of policy discussions at the White House and DHS on high-profile issues that were often in the headlines, including domestic and international crises and emergencies.

Sharmi brings over a decade of experience analyzing statutory and regulatory text to both challenge and defend agency actions in litigation. She uses her knowledge of the Administrative Procedure Act (APA) and federal rulemaking process to help clients shape regulatory authorities, comply with them, and challenge them. In both the executive and legislative branches, Sharmi crafted strategies to resolve inquiries from the Hill, other federal oversight bodies, and the public, often under immense public scrutiny.

Sharmi was awarded the Distinguished Service Medal by the Secretary of Homeland Security for exceptional service, the Department’s highest civilian honor. She was also recognized as an honorary Judge Advocate General by the U.S. Coast Guard. Sharmi values public service and maintains a diverse pro bono practice, including her time seconded to the Legal Aid Society of the District of Columbia.

Photo of Derick D. Dailey Derick D. Dailey

Derick Dailey is a Counsel in Crowell’s State Attorney General, Litigation and Trial, and White Collar Investigations Practice Groups.

Photo of Anuj Vohra Anuj Vohra

Anuj Vohra litigates high-stakes disputes on behalf of government contractors in federal and state court, and maintains an active bid protest practice before the U.S. Government Accountability Office and the U.S. Court of Federal Claims. He also assists clients with an array of…

Anuj Vohra litigates high-stakes disputes on behalf of government contractors in federal and state court, and maintains an active bid protest practice before the U.S. Government Accountability Office and the U.S. Court of Federal Claims. He also assists clients with an array of issues related to contract formation (including subcontracts and teaming agreements), regulatory compliance, internal and government-facing investigations, suspension and debarment, organizational conflicts of interest (“OCIs”), intellectual property and data rights, and the Freedom of Information Act (“FOIA”).

Prior to entering private practice, Anuj spent six years as a Trial Attorney in the U.S. Department of Justice’s Commercial Litigation Branch. At DOJ, he was a member of the Bid Protest Team—which handles the department’s largest and most complex protests—and served as lead counsel in dozens of matters representing the United States in commercial disputes before the U.S. Court of Appeals for the Federal Circuit, the Court of Federal Claims, and the U.S. Court of International Trade.

Photo of Preston Pugh Preston Pugh

Preston Pugh helps companies, board committees and large organizations conduct internal investigations and respond to government investigations, often stemming from high stakes whistleblower complaints. He is a partner at Crowell & Moring and co-leads its False Claims Act Practice. For more than 20…

Preston Pugh helps companies, board committees and large organizations conduct internal investigations and respond to government investigations, often stemming from high stakes whistleblower complaints. He is a partner at Crowell & Moring and co-leads its False Claims Act Practice. For more than 20 years, he has helped clients navigate many different types of crises—including commercial and government contract fraud investigations; C-suite corporate ethics concerns; whistleblower retaliation claims; broad-based harassment and discrimination complaints; investigations by Congress; and related litigation. He has been recognized by the Legal 500 for his work in investigations.

Photo of Rebecca Springer Rebecca Springer

Rebecca Springer joined Crowell & Moring in 1999 and currently serves as partner in the Labor & Employment Group. Her practice focuses on labor and employment litigation and counseling, particularly in the area of Office of Federal Contract Compliance Programs (OFCCP) compliance. Rebecca…

Rebecca Springer joined Crowell & Moring in 1999 and currently serves as partner in the Labor & Employment Group. Her practice focuses on labor and employment litigation and counseling, particularly in the area of Office of Federal Contract Compliance Programs (OFCCP) compliance. Rebecca has extensive experience conducting audits of personnel practices, preparing Affirmative Action Plans, and counseling clients on affirmative action issues. She also has experience conducting statistical analyses of compensation and other personnel practices for purposes of class action litigation, OFCCP compliance audits, and employer self-audits, and frequently teams with labor economists to analyze compensation and advise clients on potential risks and proactive measures to address compensation disparities.

Photo of Lorraine M. Campos Lorraine M. Campos

Lorraine M. Campos is a partner and member of the Steering Committee of Crowell & Moring’s Government Contracts Group and focuses her practice on assisting clients with a variety of issues related to government contracts, government ethics, campaign finance, and lobbying laws. Lorraine…

Lorraine M. Campos is a partner and member of the Steering Committee of Crowell & Moring’s Government Contracts Group and focuses her practice on assisting clients with a variety of issues related to government contracts, government ethics, campaign finance, and lobbying laws. Lorraine regularly counsels clients on all aspects of the General Services Administration (GSA) and the U.S. Department of Veterans Affairs (VA) Federal Supply Schedule (FSS) programs. She also routinely advises clients on the terms and conditions of these agreements, including the Price Reduction Clause, small business subcontracting requirements, and country of origin restrictions mandated under U.S. trade agreements, such as the Trade Agreements Act and the Buy American Act. Additionally, Lorraine advises life sciences companies, in particular, pharmaceutical and medical device companies, on federal procurement and federal pricing statutes, including the Veterans Health Care Act of 1992.

Lorraine has been ranked by Chambers USA since 2013, and she was recognized by Profiles in Diversity Journal as one of their “Women Worth Watching” for 2015. Additionally, Lorraine is active in the American Bar Association’s Section of Public Contract Law and serves as co-chair of the Health Care Contracting Committee.

Lorraine joined the firm from Reed Smith, where she chaired their Government Contracts & Grants Team since 2010. Prior to that, she worked as a consultant for Grant Thornton, where she advised the Intelligence Community, analyzed the Department of Defense utility privatization program, and performed numerous Circular A-76 studies for the Office of Management and Budget.

Photo of Kris D. Meade Kris D. Meade

Kris D. Meade is co-chair of Crowell & Moring’s Labor & Employment Group. He is also a member of the firm’s Management Board and Executive Committee. He counsels and represents employers in the full range of employment and traditional labor law matters, including…

Kris D. Meade is co-chair of Crowell & Moring’s Labor & Employment Group. He is also a member of the firm’s Management Board and Executive Committee. He counsels and represents employers in the full range of employment and traditional labor law matters, including individual and class action lawsuits filed under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, ERISA, and companion state statutes. Kris represents employers in connection with union organizing campaigns, collective bargaining, labor arbitrations, and unfair labor practice litigation. In 2020, Chambers USA recognized Kris as a leading labor and employment lawyer.