Asking for a change in rules to get a MS rather than end the program with no degree I am in a weird spot. I have been a PhD student for 1.5 years and in May 2018 it will be 2 full years. I already have an MS in the same subject from another school. I was told recently that I will be asked to leave the program at the end of this semester due to lack of research funding. I asked if I can be given a MS instead since I fulfilled all the requirements for that but that cannot be done as I already have a MS from in the same subject from a different place. I will try really hard to see if I can plead some leniency but I just wanted to ask if you people know of cases where students were able to plead successfully. I am really scared because if I am terminated from this program, I will be forced to leave USA because I won't have any status and I will have nothing to show for these 2 years.
In addition to the suggestion given in Nicole Hamilton's answer, and provided that you are making good progress in your degree, you still have several options:


You could see if someone else in the department has funding to support another student.
You could see if colleagues in other departments at your institution doing work related to your thesis area.
You could ask if the department will help you in transferring to another program.


The big question here is why you're being let go. If it's really that funds are low, and it's through no fault of your own, then the department owes you the right to continue in the program, or help you to continue your studies. On the other hand, if they're saying "we don't want to spend more money on you," then it'll be a lot harder to get help.

As far as awarding a duplicate degree, that's probably not decided at the department level, but instead probably requires a higher-level signoff.