diff --git a/nixos/modules/config/system-environment.nix b/nixos/modules/config/system-environment.nix
index 4b663ebf85a..361c3cfc553 100644
--- a/nixos/modules/config/system-environment.nix
+++ b/nixos/modules/config/system-environment.nix
@@ -78,9 +78,7 @@ in
         # We're trying to use the same syntax for PAM variables and env variables.
         # That means we need to map the env variables that people might use to their
         # equivalent PAM variable.
-        # Note: PAM_USER is a PAM_ITEM, HOME is an environment variable, they have 
-        # different syntax.
-        replaceEnvVars = replaceStrings ["$HOME" "$USER"] ["\${HOME}" "@{PAM_USER}"];
+        replaceEnvVars = replaceStrings ["$HOME" "$USER"] ["@{HOME}" "@{PAM_USER}"];
 
         pamVariable = n: v:
           ''${n}   DEFAULT="${concatStringsSep ":" (map replaceEnvVars (toList v))}"'';