S. 3507 — Put American Students First Act

This section declares congressional findings regarding state provision of in-state tuition rates to aliens not lawfully present in the United States, including that (1) 8 U.S.C. 1623 prohibits such benefits unless offered equally to all U.S. citizens regardless of residence; (2) 22 states and the District of Columbia continue to provide them, circumventing federal law at a taxpayer cost exceeding $1 billion annually; (3) such subsidies incentivize illegal immigration and undermine the rule of law; (4) they penalize U.S. students from other states with higher out-of-state rates; and (5) nationwide enforcement is essential for fairness and to prioritize citizens and lawful permanent residents.

This section amends section 505 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1623) to prohibit aliens not lawfully admitted for permanent residence from eligibility for any postsecondary education benefit—including in-state tuition rates—from a state or public institution of higher education; require such institutions to verify each student's immigration status annually via the Systematic Alien Verification for Entitlements (SAVE) program prior to granting benefits; and mandate reimbursement (plus interest) of the difference between in-state and out-of-state tuition rates for violations, with ineligibility to reenroll until paid. The prohibition applies to aliens enrolling on or after the date of enactment and to previously enrolled aliens upon SAVE verification in subsequent academic years, effective for academic years beginning on or after July 1, 2026. The section further amends the Higher Education Act of 1965 (HEA) to enforce compliance by (1) disqualifying states determined to have violated amended section 505 from grants under chapter 2 of subpart 2 (Federal Work-Study Programs), subpart 4 (Leveraging Educational Assistance Partnership), or subpart 6 (Gaining Early Awareness and Readiness for Undergraduate Programs) of HEA title IV part A for the following fiscal year; and (2) conditioning public institutions' participation in federal student loan programs on compliance with amended section 505.

This section establishes a severability clause, providing that if any provision of the Act or its amendments, or its application to any person or circumstance, is held unconstitutional, the remainder of the Act and its amendments, and their application to any person or circumstance, remain in effect.