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That's basically what would happen with the Bernie plan.
I've never read where he proposes to eliminate SAT/ACT considerations or GPA or any sort of entrance requirements. And, of course, it would only apply to state schools. So you still have to get good grades and score high on a standardized to get in (to a state school) and once you're in, the state pays for it. Pretty much the exact same as Germany and every other developed (and most developing) countries.
But I understand that absolutely ANY opportunity to ridicule racism claims must be seized.
There are plenty of schools with open admissions or will admit people with bad GPAs and bad SAT scores. Will they get government money too?