In this Access to Justice Policy Update, we examine several recent federal and state policy changes that could shape opportunities for South Asian immigrants and other immigrant populations.
From Illinois’ Safe Schools for All Act, which reinforces access to K–12 education for all children regardless of immigration status, to Texas’ freeze on H-1B hiring in state agencies and public universities, Illinois HB4685’s new felony for unauthorized immigration-related detention, and the U.S. Small Business Administration’s restrictions on SBA-backed loans for non-citizen business owners, these developments raise important questions about equity, access, and protections for immigrant families and workers.
Safe Schools for All Act – Illinois
- What is the policy?
- Prior to the Safe Schools for All Act, children in the U.S. had a right to a free public K-12 education regardless of their immigration status or their parents’ immigration status as established by the Supreme Court case Plyler v. Doe in 1982. Plyler also ruled that states can’t withhold funding for the education of undocumented students.
- What are recent changes?
- The Safe Schools for All Act became effective on January 1, 2026 in Illinois. It ensures that all children in Illinois, regardless of their immigration status, have a right to free public k-12 education and prohibits schools from disclosing or threatening to disclose the immigration status of the student or anyone associated with the student. The law prohibits schools from doing anything, such as asking for a social security number, that would exclude children from participating in school programs and activities or discourage school attendance. It also bars immigration agents from entering school property without valid identification, a written statement of purpose, and a valid judicial warrant.
- Illinois codified the right established in Plyler v. Doe as a state law in case the Supreme Court decides to overturn Plyler in the future just as it did with Roe v. Wade in 2022. If the Supreme Court overturns Plyler, it will be up to states to individually decide whether to protect, hinder, or remove access to free public education based on immigration status.
- How does it impact South Asians?
- As of 2020, there are 337,000 South Asians living in Illinois. The South Asian community makes up about 42% of the Asian American population and 2.5% of the overall population in Illinois. Although there is not much data on the number of undocumented South Asians in Illinois, we know that Indian Americans make up the second largest undocumented population in the state. A recent study notes that access to education for undocumented children generates a $633 billion return on investment, reduces healthcare costs by $28.9 billion, and prevents 730,000 U.S. citizen children born to undocumented immigrants from living in poverty.
H-1B/Student Visa/Green Card Updates
- What is the policy?
- H-1B visas are nonimmigrant work visas issued to foreign nationals who work in a variety of specialty occupations. It is a federal program that was passed as part of the Immigration Act of 1990 and had broad bipartisan support at the time. Texas is among the top states that utilize these visas.
- What are recent changes?
- On January 27, 2026, Texas Governor Greg Abbott directed all state agencies and public institutions of higher education to freeze H-1B hiring until May 31, 2027, unless they receive written permission from the Texas Workforce Commission. Abbott stated that high-paying, in-demand jobs should go to Texas residents instead of foreign nationals and that the hiring freeze was due, in part, to allegations of abuse of the program. Simultaneously, Texas Attorney General Ken Paxton launched investigations into at least three businesses that a conservative influencer accused of engaging in H-1B fraud.
- How does it impact South Asians?
- Policies that create barriers for or put a stop to H-1B visa approvals disproportionately affect South Asians. About 17,000 new H-1B applications were approved in Texas in 2024 with Indian nationals making up about 71% of those applications. Economic anxiety has morphed into growing anti-Indian racism from people who believe that H-1B workers are taking quality jobs from white Americans and shifting the demographics of their neighborhoods. Anti-Indian hate has been surging in recent years and spiked in 2025 following President Trump’s executive order on $100,000 fees for new H-1B visas. That anti-Indian sentiment came to a head last month at a city council meeting in Frisco, a Texas city that had the eighth-highest number of H-1B approvals in 2024, where a dozen speakers decried the “Indian takeover.” In reality, H-1B workers make up less than one percent of the workforce at most Texas public institutions.
Unlawful Restraint for Civil Immigration Enforcement & Amendment to the Criminal Code of 2012
- What is the policy?
- Previously, under 720 ILCS 5/10-3 of the Criminal Code of 2012, Illinois law made it a crime to knowingly detain someone without legal authority, regardless of the reason. The statute did not specifically address immigration enforcement—it applied broadly to any unlawful detention.
- What are recent changes?
- IL HB4685 was introduced by the Illinois General Assembly in late January 2026, creating the offense of unlawful restraint for civil immigration, defining unauthorized detentions or transfers for immigration purposes as felonies. Violations are classified as Class 3 or Class 4 if a deadly weapon is involved. The law does not apply to authorized federal immigration officers acting under the Immigration and Nationality Act.
- How does it impact South Asians?
- WBEZ reported that more than 140 Asians were arrested in Illinois during a federal immigration enforcement action known as “Operation Midway Blitz,” including individuals from Pakistan, India, Bangladesh, and other South Asian countries. The arrests took place in the Chicago area as part of civil immigration enforcement operations.
- By creating a state felony for unauthorized immigration-related detention, the law protects South Asian immigrants, who were among those arrested in previous enforcement actions. It applies in situations where someone might try to detain a person based on perceived immigration status, ensuring that private individuals cannot target South Asians for immigration-related detention or coercion.
Small Business Administration (SBA) Excludes Green Card Holder from Loans
- What is the policy?
- Previously, lawful permanent citizens (green card holders) were eligible to apply for Small Business Administration (SBA)-backed loans, provided they met ownership and residency requirements. Businesses could qualify even if they were owned by green card holders or had partial non-citizen ownership, as long as other SBA criteria were satisfied.
- What are recent changes?
- The SBA announced that effective March 1, 2026, businesses must be completely owned by U.S. citizens or nationals in order to qualify for SBA-backed loans. This change eliminates eligibility for lawful permanent residents, meaning green card holders can no longer own any portion of a business applying for SBA financing. The update rescinds prior guidance that allowed certain non-citizen ownership structures and narrows eligibility strictly to citizen-owned businesses.
- How does it impact South Asians?
- The change is expected to significantly impact South Asian immigrant communities, including Indian, Pakistani, Bangladeshi, and Sri Lankan entrepreneurs, many of whom operate small businesses in the United States. South Asian green card holders will no longer qualify, eliminating access to 7(a) and 504 loan programs commonly used for startup capital, expansion, equipment purchases, and commercial real estate. Immigrant entrepreneurs are expressing concerns, noting that SBA loans have long served as a critical source of funding to launch and grow their businesses.