DOJ Expands Legal Action Against States Over In-State Tuition for Undocumented Students

What Happened

On Thursday, August 28, 2026, the Trump administration's Justice Department initiated new lawsuits against four states: Oregon, Washington, New Mexico, and Arizona. These legal actions target state laws that permit undocumented immigrants to receive financial benefits typically offered to state residents, including in-state tuition, state grants, and state-funded student loans. The DOJ contends that these state provisions violate a federal statute which mandates that undocumented immigrants are ineligible for higher education in-state benefits unless those same benefits are universally available to every U.S. student. Assistant Attorney General Brett A. Shumate of the Civil Division stated, "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 latest round of lawsuits increases the total number of states facing such legal challenges to 21, as the Justice Department continues its enforcement efforts.

What the Evidence Establishes

The Justice Department's complaints detail significant financial disparities resulting from these state laws. For the 2026-2027 academic year, Washington residents at the University of Washington would pay $13,406, while out-of-state students face a $44,460 tuition. This creates a potential $31,054 discount for undocumented immigrants who meet specific criteria, such as earning a high school diploma in the state and living there for at least one year. In Arizona, the largest tuition gap was identified at Arizona State University, totaling $24,448. The lawsuit against Arizona alleges that in fall 2025, 432 undocumented immigrants received in-state tuition benefits at ASU, resulting in an estimated $10.5 million in reduced tuition. Furthermore, a report from the Arizona Center for Investigative Reporting estimates that over 3,600 undocumented individuals annually could qualify for in-state tuition under Arizona's law. Oregon's law is challenged for making undocumented immigrants eligible for the Rural Nurse Scholars Scholarship at Oregon Health & Science University, which covers full tuition and a $1,500 travel stipend. Washington also established the Undocumented Student Support Loan Program in 2020, providing financial aid to undocumented immigrants unable to access federal aid. The DOJ has previously secured victories in similar cases in Texas, Kentucky, Oklahoma, Nebraska, and Illinois.

Where the Accounts Conflict

The Justice Department's position, articulated by Associate Attorney General Stanley E. Woodward, Jr., is that their "efforts will not cease until President Trump’s promise is fulfilled: Illegal aliens will not receive benefits denied to American citizens." This stance directly conflicts with the legislative and policy decisions made by the targeted states. Washington Governor Bob Ferguson issued a statement to Fox News Digital, asserting, "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." This indicates a clear intent to legally challenge the DOJ's claims and defend the state's existing laws. Similarly, a spokesperson for the Arizona Board of Regents, named as a plaintiff in the Arizona lawsuit, stated that the school system "follows state law" and is "reviewing the lawsuit" to determine "appropriate next steps" with Arizona leaders. These statements highlight a fundamental disagreement over the interpretation of federal and state authority regarding higher education benefits for undocumented residents, setting the stage for prolonged legal battles rather than immediate compliance.

Context and Stakes

These lawsuits represent a significant escalation in the Trump administration's broader immigration enforcement strategy, specifically targeting state-level policies perceived as providing preferential treatment to undocumented immigrants. The legal basis for the DOJ's actions rests on a federal law that prohibits states from offering in-state tuition benefits to undocumented individuals unless those same benefits are extended to all U.S. citizens, regardless of residency. The financial stakes are substantial, as evidenced by the millions of dollars in reduced tuition at institutions like Arizona State University and the potential for similar impacts across other states. Beyond the immediate financial implications for state university systems and state budgets, these cases carry significant political weight, aligning with President Trump's campaign promises regarding immigration and national sovereignty. The outcomes of these lawsuits could establish precedents affecting the educational access and financial aid eligibility for hundreds of thousands of undocumented students nationwide. A June 2024 report estimated approximately 408,000 undocumented immigrants were enrolled in higher education, with 29.1% having arrived in the U.S. at age 17 or older, underscoring the demographic scope of these legal challenges.

What to Watch Next

The immediate focus will be on the legal responses from Oregon, Washington, New Mexico, and Arizona. These states are expected to file motions to dismiss or formal answers to the Justice Department's complaints, outlining their legal arguments for defending their respective state laws. Given Governor Ferguson's defiant statement, Washington is likely to mount a robust legal defense, potentially emphasizing states' rights to determine educational policies for their residents. Observers should monitor court filings for specific legal theories advanced by both sides, particularly concerning the interpretation of the federal statute cited by the DOJ and any constitutional arguments related to state sovereignty. Additionally, the progress of the 17 other pending lawsuits in states such as Minnesota, Virginia, California, and New York will provide further insight into the broader legal landscape and potential for consistent rulings or divergent outcomes across different federal circuits. Any appeals from the states where the DOJ has already won (Texas, Kentucky, Oklahoma, Nebraska, Illinois) could also influence the trajectory of these newer cases, setting critical precedents for future challenges.

Bottom Line

The Trump Justice Department has significantly expanded its legal campaign against states offering in-state tuition and other financial aid to undocumented immigrants, filing new lawsuits against Oregon, Washington, New Mexico, and Arizona. These actions are predicated on a federal law that prohibits such benefits unless they are equally available to all U.S. citizens. The financial implications are considerable, with millions of dollars in tuition reductions cited at institutions like Arizona State University. State officials, including Washington Governor Bob Ferguson and the Arizona Board of Regents, have indicated their intent to defend these state laws in court, setting the stage for protracted legal battles. The outcome of these 21 ongoing lawsuits will have far-reaching consequences for state educational policies, university finances, and the access to higher education for undocumented students across the United States, reflecting a core conflict between federal immigration enforcement priorities and state-level social policies.