Trump Administration Sues Four States Over In-State College Benefits for Undocumented Immigrants

The Department of Justice launched legal action Thursday against Oregon, Washington, New Mexico and Arizona, seeking to overturn state laws that permit undocumented immigrants to access in-state tuition rates, institutional grants and state-sponsored student loan programs. The federal government contends these policies violate the higher education provision of federal law, which requires that benefits available to undocumented immigrants must also be offered to all U.S. students without exception.

Assistant Attorney General Brett A. Shumate stated that colleges cannot extend benefits to undocumented immigrants that are withheld from American citizens. “This Department of Justice will not tolerate American students being treated like second-class citizens in their own country,” Shumate said. The lawsuits represent an expansion of the Trump administration’s enforcement agenda in this area, bringing the total number of states under legal challenge to 21.

The Justice Department has already secured victories in Texas, Kentucky, Oklahoma, Nebraska and Illinois on similar grounds. Associate Attorney General Stanley E. Woodward, Jr. pledged continued action, stating the department will pursue cases until “illegal aliens will not receive benefits denied to American citizens.”

Washington state presents a substantial tuition disparity, with residents paying $13,406 annually at the University of Washington compared to $44,460 for out-of-state students during the 2026-2027 academic year. Undocumented immigrants meeting specific criteria—including high school diploma completion, one year of state residency, and a signed affidavit promising to pursue permanent residency when eligible—qualify for the $31,054 discount.

Arizona State University reported 432 undocumented immigrants received in-state tuition benefits during fall 2025, representing $10.5 million in reduced tuition costs. The Arizona Center for Investigative Reporting estimates approximately 3,600 undocumented immigrants annually could qualify for in-state tuition under state law. Arizona State University’s in-state to out-of-state tuition gap reaches $24,448 at its largest.

Oregon’s lawsuit highlights additional benefits beyond tuition adjustments. The Rural Nurse Scholars Scholarship at Oregon Health & Science University covers full tuition plus a $1,500 travel stipend exclusively for in-state enrolled students, and the Justice Department alleges undocumented immigrants qualify under current state law.

A June 2024 report documented approximately 408,000 undocumented immigrants enrolled in American higher education institutions, with nearly 30 percent having arrived in the United States at age 17 or older. Additional lawsuits remain pending in Minnesota, Virginia, California, New Jersey, Kansas, Massachusetts, Rhode Island, Maryland, Colorado, New York, Connecticut and Vermont.

The Arizona Board of Regents, named as a defendant, stated the university system operates in compliance with state law and is reviewing the lawsuit to determine appropriate next steps in consultation with state leadership. Governors’ offices in all four states did not immediately respond to requests for comment.