Federal lawsuits and agreements prompt some policy reversals, but most states continue offering discounted college rates despite legal challenges.
By yourNEWS Media Newsroom
A majority of states that provide in-state tuition benefits to immigrants without legal status have continued the practice despite legal challenges from the Trump administration, according to a report by Judicial Watch.
At the start of President Donald Trump’s second term, 22 states and the District of Columbia were offering reduced tuition rates at public colleges and universities to such individuals. Federal officials have since moved to challenge those policies, but most jurisdictions have not altered their approach.
The financial impact tied to these programs has been estimated at more than a billion dollars annually, according to legislative findings associated with the proposed Put American Students First Act. The measure seeks to prohibit individuals unlawfully present in the United States from qualifying for in-state tuition nationwide, though it has not yet been enacted.
The Department of Justice has filed lawsuits against eight states over the issue. Texas, Oklahoma, and Kentucky rescinded the benefit following federal pressure, and Nebraska recently reached a formal agreement with the administration to end its long-standing policy.
Under a consent decree, Nebraska will permanently discontinue offering in-state tuition and related financial aid to immigrants without legal status. Federal officials said the agreement resolves claims that the state’s policy unlawfully prioritized non-citizens over U.S. citizens. In a separate statement, the Department of Justice said such policies violate federal law and create incentives tied to unlawful immigration. Associate Attorney General Stanley Woodward urged other states to adopt similar changes.
Despite those developments, many states have continued their programs. Jurisdictions including Arizona, California, Colorado, Connecticut, Hawaii, Illinois, Kansas, Maryland, Massachusetts, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Utah, Vermont, Virginia, and Washington remain in violation of the administration’s position.
Some states have resisted legal action. California, Oregon, Washington, Colorado, and Illinois have continued their policies despite lawsuits. In Minnesota, a federal judge dismissed the Justice Department’s case, allowing public universities to maintain in-state tuition and scholarship access for immigrants without legal status.
Illinois has also expanded benefits. Following a federal lawsuit, the state enacted a new law that took effect in January 2026, making such students eligible for financial aid programs including grants, scholarships, and stipends.
Federal officials argue that these policies conflict with the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, which bars states from offering in-state tuition to individuals without legal status unless the same rates are extended to all U.S. citizens regardless of residency.
In a related complaint, federal prosecutors stated that providing tuition benefits based on state residency to individuals unlawfully present in the country constitutes prohibited preferential treatment under federal law.
While enforcement efforts have led to some policy changes, most states continue to maintain existing tuition programs, leaving the broader legal dispute unresolved.
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