- Justice Department sued New York, Vermont, Connecticut to block in-state tuition for undocumented students.
- An Illinois judge ruled tuition-equity laws unconstitutional, forcing colleges to rescind financial aid awards.
- Loss of resident status can increase tuition by 133%, adding over twenty-two thousand dollars annually.
The Justice Department sued New York, Vermont and Connecticut on August 10, 2026, days after an Illinois judge permanently blocked that state’s tuition-equity laws. The cases target programs that let certain undocumented students pay resident rates at public colleges.
The Illinois order, issued July 24, 2026, was briefly stayed for appeal purposes. The ruling still blocked the state’s Acevedo Act and RISE Act, putting colleges under pressure before the Fall 2026 semester.
As of August 12, 2026, a state-by-state list includes California, Colorado, Connecticut, Hawaii, Illinois, Kansas, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Oregon, Rhode Island, Utah, Vermont, Virginia and Washington among jurisdictions that allow some students without lawful immigration status to receive in-state tuition.
Five states recently removed that eligibility: Florida, Texas, Oklahoma, Kentucky and Nebraska. Their changes occurred between July 2025 and May 2026.
The legal fight now reaches several jurisdictions at once. The Department of Justice argues that state programs violate a federal restriction on postsecondary benefits, while states have relied on high school attendance and graduation rather than formal residence.
Federal officials are pressing a residence-based reading of the law
The dispute relies on Section 505 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, or IIRIRA. It bars undocumented immigrants from receiving a postsecondary benefit based on state residence unless U.S. citizens can receive the same benefit without regard to residence.
Associate Attorney General Stanley Woodward described the department’s position in a statement released August 10, 2026.
“Our efforts will not cease until President Trump's promise is fulfilled: illegal aliens will not receive benefits denied to our Nation's own citizens. The Justice Department has now sued every state in the Second Circuit that seeks to thwart Congress's clear prohibition by placing alien over citizen.”
The department repeated that argument in its Connecticut complaint. Assistant Attorney General Brett A. Shumate said on August 11, 2026:
“This is a simple matter of federal law: colleges cannot provide benefits to illegal aliens that they do not provide to U.S. citizens. This Department of Justice will not tolerate American students being treated like second-class citizens in their own country.”
The lawsuits against New York, Vermont and Connecticut test programs that use local schooling as an eligibility standard. The cases were filed as the Illinois ruling began affecting financial-aid decisions.
Connecticut Attorney General William Tong said August 11 that the state would defend its 2011 tuition law. He responded to the lawsuit with the words, “Note to Trump—stay out of Connecticut.”
State Senator Derek Slap, D-West Hartford, and Rep. Gregg Haddad, D-Mansfield, issued a joint statement August 12. They called the administration’s attack on dreamers “misguided” and “cruel,” and said it could make it harder for Connecticut to meet workforce demands.
They also said the students work toward lives that benefit their families and Connecticut’s economy.
State lists show why the numbers do not match
One earlier inventory identified 25 states plus the District of Columbia with laws or policies allowing resident tuition regardless of immigration status. A later August classification places approximately 20 states and the District of Columbia in the group with policies still on the books, while litigation changes the position of some jurisdictions.
The classification divides those jurisdictions by the benefits available:
| Policy category | States or jurisdiction listed |
|---|---|
| Tuition and state-aid access | California, Colorado, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Virginia, Washington and the District of Columbia |
| Tuition access only | Kansas and Utah |
| Actively sued by the Justice Department in August 2026 | New York, Connecticut and Vermont |
The separate August 12 list differs from that table. It includes Hawaii and Illinois, but not Nevada. Illinois remains on that list even though the July 24 order blocked its laws, illustrating how a policy can appear on a broad state inventory while its operation is being challenged or halted.
The five states that repealed eligibility, Florida, Texas, Oklahoma, Kentucky and Nebraska, also do not appear in the current active-state list.
Illinois colleges began changing aid decisions before fall classes
California’s AB 540 and New York’s policy have traditionally tied eligibility to attendance and graduation at an in-state high school. That approach had remained in place for two decades before the Illinois decision.
On July 24, U.S. District Judge David Dugan ruled that Illinois’ Acevedo Act and RISE Act “violate the Supremacy Clause and are unconstitutional.” The order was permanently blocked, although it was stayed briefly for appeal purposes.
The decision reached students through campus financial-aid offices. Northern Illinois University and Illinois State University began rescinding awards days before the Fall 2026 semester.
Northern Illinois University President Lisa Freeman said the institution was “rushing to find options” for students who suddenly lost aid.
Dr. Jennifer Juárez, director of higher education policy for the Latino Policy Forum, described the effect July 30, 2026.
“By restricting access. this ruling creates new obstacles for young people to achieve their dreams. [Students] who have grown up in Illinois have deep ties to our state and already contribute to our economy.”
The affected population extends beyond Illinois. An estimated 408,000 undocumented students attend U.S. colleges, representing about 2.1% of all college students.
About 75,000 undocumented students graduate from U.S. high schools each year.
Losing resident status can add more than $22,000 in one year
The University of Connecticut’s 2026-27 rates show the immediate financial difference. The in-state charge is $17,010.
The out-of-state rate is $39,678, an increase of 133%. A student who loses eligibility can therefore face a much larger bill despite attending high school in the state.
New Jersey also has a possible legislative change ahead. On August 12, the state legislative tracker listed Bill NJ A4645, which seeks to end both in-state tuition and state aid for undocumented residents.
California is considering another response. AB 2114, described as an “educational asylum program,” would allow students from restrictive states such as Texas to pay resident tuition in California beginning in 2027.
The pending cases will determine whether high school attendance can continue to support resident-rate eligibility under IIRIRA Section 505. Colleges are already making decisions while those challenges move forward.
