Estimating the Impact of the DREAM Act

This Memorandum examines the costs and likely impact of the DREAM Act currently being considered by Congress. The act offers permanent legal status to illegal immigrants up to age 35 who arrived in the United States before age 16 provided they complete two years of college. Under the act, beneficiaries would receive in-state tuition. Given the low income of illegal immigrants, most can be expected to attend state schools, with a cost to taxpayers in the billions of dollars. As both funds and slots are limited at state universities and community colleges, the act may reduce the educational opportunities available to U.S. citizens.