Kentucky scraps in-state tuition for undocumented students after Bondi lawsuit deal

(KENTUCKY) Kentucky ended in-state tuition for undocumented immigrants in late August 2025, closing a 23-year chapter that had allowed those who finished high school in the state to pay resident rates at public colleges. The Kentucky Council on Postsecondary Education (CPE) agreed on August 22, 2025 to withdraw the policy after a federal lawsuit from the U.S. Department of Justice and direct pressure from Kentucky Attorney General Russell Coleman. The shift takes effect immediately and reaches every public campus in Kentucky.

The Justice Department—led by Attorney General Pamela Bondi—filed suit on June 17, 2025 in the U.S. District Court for the Eastern District of Kentucky. The complaint argued that Kentucky’s regulation, known as 13 KAR 2:045 (adopted in 2002), conflicted with federal law by enabling undocumented students to access in-state tuition when U.S. citizens from other states could not. Following weeks of legal exchanges, the parties reached an agreement in August, with the CPE accepting DOJ’s position.

Under the old policy, some undocumented immigrants who graduated from Kentucky high schools qualified for in-state tuition. As of August, they must pay out-of-state rates. At some institutions, that means a jump from $446 to $897 per credit hour, an increase of up to 152%. Colleges are notifying students now, with fall bills due. Several campus advisors say withdrawals are already underway as families recalculate whether they can afford another semester.

Legal basis and political backdrop

The DOJ grounded its case in Section 505 of the 1996 Illegal Immigration Reform and Immigrant Responsibility Act, codified at 8 U.S.C. § 1623. The federal statute bars states from granting postsecondary benefits based on residency to undocumented immigrants unless the same benefit is available to all U.S. citizens, no matter where they live. Federal lawyers argued Kentucky’s rule made it easier for undocumented students to qualify for resident rates than for out-of-state citizens.

Attorney General Russell Coleman pressed the state case as well, labeling the policy “unlawful” and “nonsensical,” and warning the CPE that defending it would be a “losing fight.” Governor Andy Beshear was initially named in the lawsuit but was later dismissed as a defendant. His office said the CPE operates independently and that the governor had no direct control over its tuition policy. The CPE eventually agreed to withdraw the regulation in what officials described as an agreed-upon decree.

This case arrives amid broader national pressure on tuition equity rules. According to court filings, the DOJ cited a related decision in Texas earlier this summer, where a judge struck down the state’s Dream Act in June 2025. That ruling has energized officials who argue states should not create incentives for undocumented immigration through lower tuition. Advocates counter that these policies help local students who grew up in the state succeed in college and contribute to the economy. The issue drew attention during the Trump years; actions taken by the federal government under President Trump scrutinized state-level benefits for undocumented residents.

Impact on students and campuses

The practical effects in Kentucky are immediate and personal. Students who planned schedules and budgets around resident rates are facing unexpected bills. Financial aid offices report a flood of visits and calls.

Campus leaders say they are trying to identify emergency funds, scholarships open to all students, or flexible payment plans, but those options are limited and cannot close gaps of this size. Without direct aid or policy relief, many students may:

• Take fewer credits
• Delay graduation
• Leave school altogether

Advocacy groups warn the ripple effects will be felt beyond classrooms. The Mexican American Legal Defense and Educational Fund (MALDEF) filed a motion to intervene on behalf of students, calling the DOJ lawsuit a “nativist abuse of federal authority” and predicting higher drop-out rates. They argue the rule had stood for years without legal challenge and helped young people who consider Kentucky home.

Supporters of the reversal say the change restores fairness to out-of-state citizens who previously paid higher rates than undocumented classmates living in Kentucky. They argue the state rule clashed with federal law and exposed institutions to liability, and that aligning tuition policy with federal statutes is necessary for compliance and consistent treatment of students from across the United States 🇺🇸.

Important: there is no grandfathering. Every undocumented student at Kentucky’s public colleges falls under the new rule, whether they are first-year students or months from finishing a degree.

Advisors encourage affected students to:

• Speak with financial aid offices immediately
• Check institutional scholarship lists that are not tied to residency or immigration status
• Consider part-time enrollment while exploring lawful options with qualified immigration counsel

Procedural status and what’s next

As of August 31, 2025, the agreement is in effect and being enforced statewide. The CPE has not announced any transitional relief. Institutions are updating websites and tuition pages to reflect the end of in-state tuition for undocumented students.

While MALDEF seeks to intervene, the decree stands unless a court later modifies it. VisaVerge.com reports that colleges may see short-term enrollment dips among impacted groups, followed by longer-term shifts as families reassess where and how to pay for degrees.

Stakeholders expect continued litigation. Possible next steps include:

1. Opponents asking courts to revisit how Section 505 applies when states base eligibility on high school graduation rather than residency.
2. Supporters citing the Texas ruling and federal supremacy claims to defend the Kentucky result.
3. Potential legislative action, though the federal statute creates a high bar for states attempting to reintroduce tuition benefits for undocumented immigrants without extending the same rates to all U.S. citizens.

Families seeking help should:

• Contact campus financial aid offices immediately
• Gather billing statements, prior aid letters, and proof of Kentucky high school graduation (may help with institutional aid appeals)
• Verify whether private scholarships are portable and whether donors impose residency or citizenship limits
• Reach out to community organizations for possible stopgap grants (note: funds are usually short-term and limited)

Dropping classes after deadlines can add fees or create repayment issues for previous aid. Keep enrollment communication open and consult academic advisors to redesign schedules that protect progress while reducing per-term costs.

Some practical options students might consider:

• Community college pathways with lower per-credit prices (out-of-state differential still applies but base rate is smaller)
• Institutional scholarships that do not require residency or citizenship
• Flexible payment plans or emergency aid where available

The CPE, the Office of the Kentucky Attorney General, and MALDEF each provide contact points for policy questions or legal assistance. Families should monitor official channels for any court developments that could change timelines.

For now, the core facts remain: in-state tuition for undocumented immigrants in Kentucky has ended, the price jump is steep, and the timeline is immediate. Institutions and students are adjusting on the fly while courts and policymakers weigh the next round of challenges.