The Justice Department has filed lawsuits against four states—Oregon, Washington, New Mexico, and Arizona—challenging laws that provide in-state tuition rates and other financial benefits to undocumented immigrants. The department asserts that these state laws violate federal law by making these benefits available to individuals not legally present in the U.S., while potentially denying them to U.S. citizens.
Assistant Attorney General Brett A. Shumate stated that federal law prohibits colleges from offering benefits to undocumented immigrants that are not also available to U.S. citizens. "This Department of Justice will not tolerate American students being treated like second-class citizens in their own country," Shumate said in a statement.
The lawsuits allege that these state-level tuition policies create a disparity where undocumented students receive educational benefits that could be offered to citizens. The difference in costs can be substantial; for instance, at the University of Washington, Washington residents paid $13,406 for the 2026-2027 school year, while out-of-state students faced a cost of $44,460. The Justice Department contends that undocumented immigrants could receive a discount of $31,054 under Washington's law if they meet certain residency and intent requirements.
In Arizona, the Justice Department's lawsuit claims that Arizona State University provided in-state tuition benefits to 432 undocumented immigrants in Fall 2025, resulting in an estimated $10.5 million in reduced tuition costs. A report cited in the lawsuit suggests that over 3,600 undocumented immigrants could qualify for in-state tuition annually under Arizona's current law. A spokesperson for the Arizona Board of Regents acknowledged that the school system follows state law and stated they are reviewing the lawsuit.
Beyond tuition, the benefits extend to other financial aid programs. In Oregon, undocumented students are alleged to be eligible for the Rural Nurse Scholars Scholarship, which covers full tuition and includes a travel stipend. In Washington, a program established in 2020, the Undocumented Student Support Loan Program, provides financial aid to undocumented immigrants who cannot access federal aid. Washington Governor Bob Ferguson stated his commitment to the state's laws, saying, "Washington state won’t be bullied into changing how we provide opportunities for young people in our state. We’ll see them in court, and we expect to win."
These legal challenges add to a growing number of states facing scrutiny over such policies. The Justice Department reports having won similar cases in Texas, Kentucky, Oklahoma, Nebraska, and Illinois. Lawsuits are also pending against other states, including Minnesota, Virginia, California, New Jersey, Kansas, Massachusetts, Rhode Island, Maryland, Colorado, New York, Connecticut, and Vermont. An estimated 408,000 undocumented immigrants were enrolled in higher education as of June 2024.