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Federal Lawsuit Threatens In-State Tuition for Undocumented Students Across Multiple States

Higher education institutions and advocacy groups are mobilizing to defend state tuition equity policies after the Department of Justice filed lawsuits challenging in-state tuition access for undocumented students in seven states, according to a new playbook released this week by the Presidents' Alliance on Higher Education and Immigration.

Undocumented Education House Committee 03 ScaledFile photoThe legal challenges, which target Texas, Minnesota, Kentucky, Oklahoma, Illinois, California, and Virginia, follow an April 2025 executive order directing the Attorney General to halt enforcement of state laws that allegedly favor noncitizens. The lawsuits represent what the playbook calls "an unprecedented attempt to reinterpret federal law in a way that undermines state authority over higher education."

In Texas and Oklahoma, consent judgments have already restricted in-state tuition eligibility to students with "lawful presence," eliminating access for undocumented students while preserving it for DACA recipients, asylum seekers, and others with certain immigration statuses.

"The posture of these federal challenges has varied, and litigation is ongoing," the playbook states, noting that some state officials are defending their laws while others joined the federal government in seeking court orders against their own policies.

The policy changes have created significant confusion about which students remain eligible. "Importantly, the EO itself does not alter or invalidate existing state tuition equity laws, and each legal challenge turns on state-specific statutory language and legal interpretation," according to the guidance document.

Twenty-five states and Washington, D.C., currently provide in-state tuition access to undocumented students who meet specific criteria, typically including attendance at and graduation from local high schools. The playbook cites research showing tuition equity policies reduce high school dropout rates by eight percentage points and make undocumented students 1.54 times more likely to enroll in postsecondary education.

The economic stakes are substantial. The American Immigration Council estimates that rescinding Texas's tuition equity policy alone "could cost the state $461 million annually," according to the playbook.

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