Undocumented immigrants can't get a REAL ID, but may still qualify for other state papers
One of the key provisions to the REAL ID law is that a compliant document establishes a person's status as a lawful resident in the United States. In order to get a REAL ID-compliant identification document, applicants will have to provide their state ID issuer with proof of residence and proof of their lawful status in the U.S.
That means undocumented immigrants will not be able to lawfully obtain a REAL ID-compliant document, but it doesn't mean they will be completely ineligible to receive IDs from the state in which they live.