diff --git a/doc/whats_new/v1.0.rst b/doc/whats_new/v1.0.rst
index 488bd3f8c0dd7..ece5ca058d9f5 100644
--- a/doc/whats_new/v1.0.rst
+++ b/doc/whats_new/v1.0.rst
@@ -116,8 +116,9 @@ Changelog
 - |Enhancement| :func:`datasets.fetch_kddcup99` raises a better message
   when the cached file is invalid. :pr:`19669` `Thomas Fan`_.
 
-- |Feature| load_files now allows users to include a blocklist and 
-   an allowlist. :pr:`19747` by :user:`Tony Attalla <tonyattalla>`.
+- |Feature| :func:`datasets.load_files` now accepts a ignore list and
+  an allow list based on file extensions. :pr:`19747` by
+  :user:`Tony Attalla <tonyattalla>`.
 
 :mod:`sklearn.decomposition`
 ............................
diff --git a/sklearn/datasets/_base.py b/sklearn/datasets/_base.py
index a9a2d23b2809f..d5dcf5ed96dfd 100644
--- a/sklearn/datasets/_base.py
+++ b/sklearn/datasets/_base.py
@@ -202,7 +202,7 @@ def load_files(container_path, *, description=None, categories=None,
     try:
         assert not (allowed_extensions and ignored_extensions)
     except AssertionError:
-        raise AssertionError("Ignored extensions and allowed extensions cannot"
+        raise ValueError("Ignored extensions and allowed extensions cannot"
                              " both be present. Please choose one or the"
                              " other.")
 
diff --git a/sklearn/datasets/tests/test_base.py b/sklearn/datasets/tests/test_base.py
index f489035de914a..8ea17b23552ca 100644
--- a/sklearn/datasets/tests/test_base.py
+++ b/sklearn/datasets/tests/test_base.py
@@ -66,16 +66,6 @@ def test_category_dir_2(load_files_root):
     _remove_dir(test_category_dir2)
 
 
-@pytest.fixture
-def test_category_dir_3(load_files_root):
-    test_category_dir_3 = tempfile.mkdtemp(dir=load_files_root)
-    sample_file = tempfile.NamedTemporaryFile(dir=test_category_dir_3,
-                                              delete=False, suffix='.txt')
-    sample_file.close()
-    yield str(test_category_dir_3)
-    _remove_dir(test_category_dir_3)
-
-
 def test_data_home(data_home):
     # get_data_home will point to a pre-existing folder
     data_home = get_data_home(data_home=data_home)
@@ -135,12 +125,13 @@ def test_load_files_w_allowed_and_ignored_extensions(load_files_root):
     msg = ("Ignored extensions and allowed extensions cannot both be present."
            " Please choose one or the other.")
 
-    with pytest.raises(AssertionError, match=msg):
+    with pytest.raises(ValueError, match=msg):
         load_files(load_files_root, allowed_extensions=[".txt"],
                    ignored_extensions=[".txt"])
 
 
 def test_load_files_w_ignore_list(tmp_path):
+    """Test load_files with ignore_extensions."""
     d = tmp_path / "sub"
     d.mkdir()
     p1 = d / "file1.txt"
@@ -150,11 +141,13 @@ def test_load_files_w_ignore_list(tmp_path):
     p3 = d / "file3.json"
     p3.touch()
     res = load_files(tmp_path, ignored_extensions=[".txt"])
-    assert len(res.filenames) == 2
-    assert all([re.search(r".*\.txt$", f) for f in res.filenames]) is False
+    assert str(p1) not in res.filenames
+    assert str(p2) in res.filenames
+    assert str(p3) in res.filenames
 
 
 def test_load_files_w_allow_list(tmp_path):
+    """Test load_files with_allow_extensions."""
     d = tmp_path / "sub"
     d.mkdir()
     p1 = d / "file1.txt"
@@ -164,8 +157,9 @@ def test_load_files_w_allow_list(tmp_path):
     p3 = d / "file3.json"
     p3.touch()
     res = load_files(tmp_path, allowed_extensions=[".txt"])
-    assert len(res.filenames) == 1
-    assert all([re.search(r".*\.txt$", f) for f in res.filenames]) is True
+    assert str(p1) in res.filenames
+    assert str(p2) not in res.filenames
+    assert str(p3) not in res.filenames
 
 
 def test_load_sample_images():