More importantly allowing an illeagal in does reduce the number allowed at the school, so it actually takes a slot away from someone most likely a US citizen.
This is the real problem with the law.
I would be very surprised if the Texas Colleges and Universities do not get any Federal Tax dollars at all. Similar to that for K-12 that localities get. Very surprised. So this isn't a 'no harm - no cost' law. It is another tax and a disregard for immigration law.