A Republican-backed bill passed the House this week would require the U.S. Department of Education to screen Free Application for Federal Student Aid (FAFSA) applicants for identity fraud before they can receive federal financial aid. The measure, called the No Aid for Ghost Students Act, passed by a 249–172 vote with support from three dozen Democrats. The bill would largely codify the Department’s April-launched FAFSA fraud detection system. Under that approach, applicants flagged as high fraud risk must present government-issued IDs before aid is disbursed. The legislation targets reports of scammers using fake identities to apply and enroll—often at community colleges—to steal federal funds. Sponsors point to escalating losses and enforcement activity. In California Community Colleges documents obtained by EdSource, 116 institutions disbursed more than $1.9 million in aid to fake students in the first quarter of 2026, and the system has lost $30 million since 2024. Education officials previously said temporary verification helped prevent $1 billion in fraud. If enacted, the requirement could tighten compliance timelines for colleges and universities, shape verification workflows around FAFSA, and add an additional layer of operational scrutiny for institutional financial aid offices—especially at institutions seeing higher verification volumes.