The American Immigration Council is a non-profit, non-partisan organization. For over 20 years, access to in-state tuition for all students, regardless of immigration status, has been a powerful lever of inclusion and opportunity across the United States. First pioneered by Texas in 2001 under Republican Governor Rick Perry, in-state tuition equity policies have allowed undocumented students who grew up in a state to simply pay the same tuition rates as their peers. This simple principle gave countless young people a shot at higher education. Since 2001, this bipartisan policy has been replicated in 22 states.
But in recent years, the increasing wave of anti-immigrant rhetoric and policies—further escalated by Trump’s executive order released this April to repeal benefits for undocumented community members—has begun to unravel these policies.
Why in-state tuition equity matters
Contrary to erroneous political rhetoric, in-state tuition policies do not grant free or reduced-cost education to undocumented students. Rather, they allow students who meet specific residency and graduation requirements, regardless of immigration status, to pay the same tuition as their peers. Without this access, many are charged expensive out-of-state rates, a major barrier to accessing higher education.
Economically, the benefits of in-state tuition equity are clear. In 2023, approximately 510,000 undocumented students were enrolled in U.S. colleges and universities, representing 2.4% of all college students nationwide. In addition to their economic contributions through paying taxes, spending power, and filling key workforce jobs, when granted access to education, their earning potential increases dramatically—college graduates contribute significantly more to tax bases and social security systems. These policies also reduce high school dropout rates and can encourage enrollment at higher education institutions and the achievement of advanced degrees.
Moreover, undocumented students who earn a degree are more likely to become entrepreneurs, fill critical workforce shortages (especially in healthcare, education, and technology), and reduce public assistance costs. Socially, in-state tuition policies foster inclusion, reduce dropout rates, and improve civic engagement across communities.
The threat to repeal is ignited in five states
Since 2001, states like Florida, Utah, Arizona, and Kentucky have passed tuition equity programs. However, this year, a major shift occurred when the Florida legislature repealed its in-state tuition policy that had been signed into law nearly 10 years prior by Republican Governor Rick Scott.
A few months later, despite Texans defeating nine separate bills attempting to repeal the Texas Dream Act, the Department of Justice (DOJ), empowered by President Trump’s April executive order, filed a lawsuit to invalidate the Act, with Texas Attorney General Ken Paxton quickly joining the effort. The court issued a permanent injunction and ended in-state tuition in Texas on June 4.
Two separate motions to intervene were filed on June 11 and June 24. Two months later, on August 15, both motions to intervene were denied by the district court and notices of appeal were filed with the Fifth Circuit Court of Appeals. Litigation is ongoing.
Since then, the DOJ has filed lawsuits against other states as well, including Oklahoma, where Attorney General Gentner Drummond quickly sided with the government to end the policy. In Kentucky, a civil rights organization is pushing back against the state’s decision to preemptively end their policy. Meanwhile, the state of Minnesota is challenging the DOJ’s lawsuit against their in-state tuition policy, with Illinois expected to similarly push back.
Confusion on campus
As students have returned to campus over the last month, limited guidance, variations in interpretation of these policy changes, and correspondence issued by schools about the policies have resulted in confusion.
As a result, many students who had been eligible for in-state tuition now face the hard choice to reduce their courseload, seek alternative financial aid sources, or pause their education altogether.
The future of in-state tuition is uncertain, but costs of repealing are clear
The future of in-state tuition for undocumented students hangs in the balance. What is clear, however, is that these policies represent far more than tuition rates. They’re about opportunity, economic growth, and the values that shape our education system and access to it.
Repealing these laws may seem like a political win to some, but it carries steep costs for our communities, economies, and young people who simply want a fair shot. The states that choose to defend these policies aren’t just resisting federal overreach; they’re investing in their future.
