Texas Ends In-State Tuition for Illegals Hours After Trump DOJ Files Lawsuit

By Brandon Waltens | Texas Scorecard | June 4, 2025

Just two days after the Texas Legislature adjourned without passing legislation to end in-state tuition for illegal aliens, the Trump administration’s Department of Justice has filed a federal lawsuit against the state of Texas.

Now, the state has settled, ending the discounted tuition for illegals for now.

Filed in the U.S. District Court for the Northern District of Texas, the lawsuit challenges longstanding provisions of the Texas Education Code that allow certain illegal aliens to pay in-state tuition at public colleges and universities—rates that are significantly lower than those charged to U.S. citizens from other states.

“Federal law prohibits illegal aliens from getting in-state tuition benefits that are denied to out-of-state U.S. citizens,” the DOJ complaint reads. “There are no exceptions. Yet the State of Texas has ignored this law for years.”

The lawsuit cites a federal statute that bars states from offering postsecondary education benefits based on residency to illegal aliens unless the same benefit is available to all U.S. citizens regardless of residency. The DOJ argues Texas law is in direct violation of that statute and therefore preempted under the Supremacy Clause of the Constitution.

Since 2001, Texas has allowed illegal alien students to qualify for in-state tuition if they attended Texas high schools and resided in the state for a certain period. At the time, the policy received bipartisan support and was signed into law by then-Gov. Rick Perry.

During his 2012 presidential campaign, Perry defended the law and infamously called critics of the policy “heartless” during a nationally televised debate.

But the political winds have since shifted.

Senate Bill 1798 by State Sen. Mayes Middleton would have repealed that provision and barred state-funded financial aid from going to illegal aliens. Despite being placed on the Senate intent calendar, the bill was never brought up for a vote.

The delay frustrated conservatives, especially as party leaders like the Republican Party of Texas Chairman Abraham George urged swift passage, calling it critical to fulfilling the GOP’s legislative priorities.

Now, with the legislative session over and the bill dead, the Trump administration is stepping in to try to accomplish what the Legislature didn’t.

The DOJ asked the court to declare the Texas provisions unconstitutional and to permanently block the state from enforcing them.

Hours after the lawsuit was announced, a settlement was announced, with the state agreeing not to offer discounted tuition to illegal aliens.

“In-state tuition for illegal immigrants in Texas has ended. Texas is permanently enjoined from providing in-state tuition for illegal immigrants,” wrote Gov. Greg Abbott in a social media post.

“Today, I entered a joint motion along with the Trump Administration opposing a law that unconstitutionally and unlawfully gave benefits to illegal aliens that were not available to American citizens,” said Attorney General Paxton. “Ending this discriminatory and un-American provision is a major victory for Texas,” said Attorney General Ken Paxton.

Brandon Waltens

Brandon serves as the Senior Editor for Texas Scorecard. After managing successful campaigns for top conservative legislators and serving as a Chief of Staff in the Texas Capitol, Brandon moved outside the dome in order to shine a spotlight on conservative victories and establishment corruption in Austin. @bwaltens