WASHINGTON (Reuters) - A political battle is looming over a bill that would allow tens of thousands of children of illegal immigrants to the United States to gain legal status and receive state aid for college education.

The Development, Relief, and Education for Alien Minors Act passed the Senate Judiciary Committee last week by 16 votes to 3. But the legislation still faces stiff obstacles in the House (of Representatives).

The issue could play in next year's presidential election, when both parties intend to fight for the growing Latino vote. Immigration experts said President Bush's support would greatly enhance the legislation's chances of being enacted. So far, the White House has been noncommittal .

"We feel the White House will be supportive if we demonstrate that the bill has enough support in the House to stand a chance of being enacted," said Brent Wilkes, executive director of the League of United Latin American Citizens.

The bill, sponsored by Utah Republican Sen. Orrin Hatch and Illinois Democrat Richard Durbin, would grant conditional permanent resident status to young people who came to the United States illegally with their parents.

To be eligible, they would have to have been in the country for five years at the time of the bill's enactment, have entered before the age of 16, have graduated from high school and have a clean record. They would have the chance to qualify for permanent residency by completing two years of college or by serving for two years in the armed services within the next six years.

The bill would also repeal part of immigration legislation passed in 1996 that banned states from offering college tuition grants or aid to illegal immigrants.

"Many youngsters find themselves in a Catch-22 situation. As illegal immigrants, they cannot work legally. Moreover, they are effectively barred from developing academically beyond high school," said Hatch, introducing the bill. "Though these children have built their lives here, they have no possibility of achieving or living the American dream."

YOUNG MAN DEPORTED

Last August, the U.S. 9th Circuit Court of Appeals ruled that a 24-year-old Guatemalan had to be deported, even though he had lived in the United States since arriving illegally with his mother when he was less than a year old.

It is unclear exactly how many people would be affected by the bill. According to lawyer Greg Siskind, who puts out a weekly newsletter on immigration law, as many as 65,000 illegal immigrants graduate from U.S. high schools every year but not all would meet the conditions of the bill.

Wilkes said perhaps 100,000 could benefit immediately.

But opposition is already gathering. Groups opposing any amnesty for illegal immigrants argue that the legislation would merely reward illegal behavior.

"It's a slap in the face to legal immigrants who play by the rules. Sure, it puts a more attractive face on amnesty because these people came here as children with their parents. But it still rewards illegal immigration," said Steve Camarota of the Center for Immigration Studies, a group which supports slowing the flow of immigration to the United States.

All three senators who voted against the act in committee last week were Republicans from the South, where Bush has his strongest support.