Dreams deferred: Federal pressure revokes in-state tuition, college access
Texas has repealed its long-standing Dream Act under pressure from federal lawsuits, ending in-state tuition for many undocumented students. Advocates warn this sets a dangerous precedent, with other states likely to follow. The move threatens student privacy, weakens the workforce and undermines decades of progress in education opportunity.
After more than two decades of granting in-state tuition rates to certain undocumented students through the “Texas Dream Act,” Texas officials have bowed to mounting pressure from the Trump administration to end the law.
The Texas Dream Act had withstood repeated repeal attempts and was even upheld during the 2025 legislative session. However, Texas abruptly reversed course after the Trump administration filed a lawsuit challenging its legality. Now UnidosUS is concerned that other states will revoke their in-state tuition rules for undocumented college students.
“Reversing the Texas Dream Act betrays tens of thousands of students who are Texan in every way but their documentation, and the vast majority of them are Latino,” says Magin Sanchez, UnidosUS Higher Education Senior Policy Analyst. “Not only does it reinforce old systems of racism and deepen inequalities, but it also wastes investments made in K-12 education and weakens the state’s skilled workforce.”
On June 4, the U.S. Department of Justice (DOJ) filed a lawsuit against the state of Texas, alleging that the Texas Dream Act violated the 1996 Illegal Immigration Reform and Immigrant Responsibility Act. Rather than defend its own law in court, Texas Attorney General Ken Paxton and Governor Greg Abbott agreed to a “consent judgment,” joining the DOJ in asking a district court to invalidate the law within six hours of the complaint’s filing.
Texas — one of the largest states in the nation and home to a significant immigrant and Latino student population — was the first of several states to be sued by the DOJ on these grounds. Over the last month, the federal government has filed similar lawsuits against Kentucky, Minnesota and Illinois.
With 73,379 undocumented students in higher education, Texas is second only to California —which has about 100,000 — according to data from the Higher Ed Immigration Portal operated by the President’s Alliance on Higher Education and Immigration. While the numbers are still relatively small compared to the broader college student population (4.4 %), drops in enrollment due to tuition costs still hurt the university’s bottom line and weaken the skilled workforce. Currently, 23 states, including California, New Mexico, New York, Virginia and the District of Columbia still offer in-state tuition to undocumented students, and 18 of those also provide comprehensive access to state financial aid, portal data shows.
A dangerous retreat away from educational opportunity
The growing wave of federal lawsuits challenging in-state tuition policies is creating a chilling effect across the country. Each time a state chooses not to defend its own laws and instead aligns with federal efforts to dismantle them, it signals a retreat from its commitment to educational access and opportunity.
“Every state that gives in to these lawsuits is not just walking away from undocumented students — it’s turning its back on its own future potential. When we deny students the chance to pursue higher education, we deny ourselves the benefits of their contributions to our communities and economy,” Sanchez says.
“A loss in student enrollment is a loss of state talent and a broader financial hit for the state. It’s going to hurt the economy because people are not going to want to come to Texas, so students will take their dollars to other states to work and contribute to the economies there, says Eric Holguín, UnidosUS Texas state director, adding, “it’s pointless and cruel.”
Identifying undocumented students
Revoking access to in-state tuition for undocumented students also raises serious questions about students’ privacy rights, as it would require universities to track which students are documented and which are not. In fact, two weeks after the repeal of the Texas Dream Act, Texas Higher Education Coordinating Board commissioner Wynn Rosser wrote a letter to presidents of public colleges asking them to do just that.
“In order to ensure uniformity of application and compliance with the injunction and Texas Education Code 54.056(b), each institution must assess the population of students who have established eligibility for Texas resident tuition under Section 54.053(a)(3) who are not lawfully present and will therefore need to be reclassified as non-residents and charged non-resident tuition for the fall 2025 semester pursuant to the court order and Texas Education Code §§ 54.054 and 54.055,” he wrote.
“This moment also serves as a critical reminder that states have clear authority under federal law to pass policies that expand access to in-state tuition for undocumented students. Providing such access does not violate federal law. For more than two decades, states across the political spectrum have enacted tuition equity policies that recognize the contributions and potential of undocumented students while remaining consistent with federal legal frameworks,” Sanchez says.
What remains uncertain is the fate of states that have not yet faced federal lawsuits. Will they uphold their commitments to educational access and economic inclusion, or pull back in anticipation of legal challenges?
The decision to stand firm in support of inclusive policies is not only a legal matter. It also reflects a broader commitment to equality, opportunity, and the strength of our public higher education systems. How states choose to respond in this moment will shape the future of undocumented students and the communities that depend on their success.
