A policy that once seemed like a local education decision has become a national legal battle, and the outcome will determine whether thousands of students can afford college at all.
The Trump administration has sued seven states over their in-state tuition policies for undocumented students, with the Justice Department arguing the laws violate federal immigration statutes. Several states have already backed down. Others are fighting back in court, according to CNBC.
What is at stake for student tuition rates
The financial gap between in-state and out-of-state tuition is not a minor inconvenience. At four-year public colleges, in-state tuition and fees averaged $11,950 for the 2025-2026 academic year.
Out-of-state tuition averaged $31,880, according to the College Board, as CNBC reported.
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The gap can be even larger at flagship universities. At the University of Virginia, in-state students paid $23,897 in tuition, while out-of-state students paid $62,923 in 2025-2026, according to U.S. News data cited by the Daily Signal.
“Out-of-state tuition costs are three times as much,” Gaby Pacheco, CEO of TheDream.US, an immigration advocacy organization, told CNBC. “Many of them have to drop out or switch to community college.”
She added that without in-state access, “it’s going to become a lot harder for the non-white or non-rich communities.”
How the legal fight over undocumented college students unfolded
Texas was the first state to extend in-state tuition to undocumented students, doing so in 2001 under Republican Governor Rick Perry. Over time, the policy spread to 22 states and the District of Columbia, the Higher Ed Immigration Portal reported.
That landscape has been shifting rapidly. Under former Attorney General Pam Bondi, the Justice Department sued seven states: Virginia, Texas, Kentucky, Illinois, Oklahoma, Minnesota, and California.
The suits cite two Trump executive orders seeking to prevent undocumented immigrants from receiving taxpayer-funded benefits, as well as the 1996 Illegal Immigration Reform and Immigrant Responsibility Act, according to Courthouse News.
“These laws unconstitutionally discriminate against U.S. citizens, who are not afforded the same reduced tuition rates or scholarships,” Bondi said, according to NBC News.
Texas and Oklahoma agreed to consent decrees eliminating the benefit, with the Texas deal approved by a court within six hours of the lawsuit being filed.
Florida, Texas, and Oklahoma have now all eliminated in-state tuition eligibility for undocumented students, the Higher Ed Immigration Portal noted. Illinois and California continue to fight the suits in court.
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Virginia: the case to watch
Virginia has become the most closely watched battleground. The DOJ sued the state on Dec. 30, 2025, over its 2020 Virginia Dream Act, which allows students who attended two years of high school in Virginia and paid state income taxes to qualify for in-state tuition regardless of immigration status, according to DNYUZ.
Virginia’s outgoing Republican attorney general sided with the federal government, calling the law unconstitutional. Incoming Democrats and advocacy groups vowed to fight, according to Inside Higher Ed. A judge’s decision is still pending, and some experts remain hopeful the state law will survive, CNBC reported.
Over 13,000 undocumented students are currently attending higher education institutions in Virginia, with approximately 5,000 graduating from high school in the state each year, according to Courthouse News.
States at a glance:
- States with in-state tuition for undocumented students: 22 plus D.C.
- States sued by DOJ: Virginia, Texas, Kentucky, Illinois, Oklahoma, Minnesota, California
- States that eliminated the benefit: Texas, Oklahoma, Florida
- States still fighting in court: Illinois, California, Virginia
- Average in-state tuition 2025-2026: $11,950
- Average out-of-state tuition 2025-2026: $31,880
What this means for students and families
For undocumented students who grew up in states now eliminating the benefit, the practical impact is immediate. Many cannot afford the out-of-state rate and face the choice of dropping out, transferring to a community college, or leaving the state altogether.
The uncertainty extends beyond current students. High school seniors planning for college now face a policy landscape that can shift between when they apply and when they enroll. A law that exists in April may not exist in September.
The fight over in-state tuition is no longer just an education debate. It has become a legal and political contest over how states define belonging, who qualifies for public investment, and whether a student’s immigration status should determine their access to affordable higher education in the state where they grew up.
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