Well, I've had and have kids in colleges, but none of my family would agree with this pander-attempt.
People tend not to value things they are given for free. To be blunt, there are already a lot of sloughers in JCs, there just to be able to stay on Mommy's or Daddy's health plans, not for an actual education. This would make it 10X worse!
This is going to turn into an instant verification nightmare - intentionally, IMO. Things like General Ed requirements, grading, and trying to hold people to the proposed - very lax! - standards will all be labelled "racist" or something-or-other-else-ist and the result, in just a few years, will utter chaos, destruction of any semblance of academic standards, and junior college degrees and certificates having less value than toilet paper.
Besides being a grossly obvious pander, this also targets for-profit private colleges - some of which are good - and small private colleges generally (many of which are religious) by enticing students away from what costs money to what is "free".