August 28, 2026

Justice Department Sues States Over Tuition Benefits to Illegal Immigrants

The Justice Department has launched lawsuits against Vermont, Connecticut, and New York due to laws that allegedly prioritize tuition benefits for illegal immigrants over American citizens. This action is part of broader efforts by the Trump administration to challenge similar laws in multiple states.

On Thursday, lawsuits were filed against four states—Oregon, Washington, New Mexico, and Arizona—over legislation allowing illegal immigrants to access state financial benefits such as in-state tuition, state grants, and student loans. The Department argues these laws violate federal regulations stating illegal immigrants are ineligible for higher education benefits unless the same benefits are available to all U.S. students.

This is a simple matter of federal law: Colleges cannot provide benefits to illegal aliens that they do not provide to U.S. citizens,” Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division stated. “This Department of Justice will not tolerate American students being treated like second-class citizens in their own country.”

Arizona State University faces scrutiny for allegedly continuing efforts related to diversity, equity, and inclusion. The Justice Department’s lawsuits now extend the total number of states facing challenges over such laws to 21. Victories in Texas, Kentucky, Oklahoma, Nebraska, and Illinois have already been secured.

Location-based disparities in tuition costs are stark. For instance, in Washington, in-state residents could pay $13,406 compared to $44,460 for out-of-state students at the University of Washington in the 2026-2027 school year—a $31,054 discount available to illegal immigrants fulfilling specific conditions.

Similarly, Arizona’s lawsuit highlighted disparities, showing illegal immigrants receiving significant tuition reductions at institutions like Arizona State University. In fall 2025, 432 illegal immigrants benefitted from $10.5 million in lowered tuition costs at Arizona State University. More than 3,600 illegal aliens annually might qualify for in-state tuition under Arizona’s law.

A spokesperson from the Arizona Board of Regents said the school system adheres to state laws: “We are reviewing the lawsuit and will work closely with Arizona leaders on the appropriate next steps.”

Educational benefits extend beyond tuition reductions. In Oregon, for instance, only in-state students at Oregon Health & Science University can access a Rural Nurse Scholars Scholarship covering full tuition and granting a $1,500 travel stipend. The Justice Department claims illegal immigrants qualify under state law.

A June 2024 report estimated 408,000 illegal immigrants are enrolled in higher education, with 29.1% arriving in the U.S. at 17 or older. Additional lawsuits are pending in Minnesota, Virginia, California, New Jersey, Kansas, Massachusetts, Rhode Island, Maryland, Colorado, and Vermont.

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