Texas Tuition Lawsuit Update
A federal appeals court has affirmed a decision blocking Texas from offering in-state tuition rates for undocumented immigrants while imposing much higher fees on out-of-state American citizens.
On July 9, the 5th U.S. Circuit Court of Appeals upheld a lower court’s dismissal of an outside group’s intervention in the case. Judge Jerry Smith noted that federal laws and regulations prevent Texas from offering residence-based tuition discounts to undocumented individuals unless all U.S. citizens have the same access, no matter where they reside. The court concluded that the intervening parties failed to provide a solid defense and lacked the standing to challenge the ruling.
In June 2025, the Department of Justice initiated legal action against Texas, leading to the state’s immediate consent decree to halt the legislation. Then-Attorney General Pam Bondi expressed approval of this agreement. She remarked that the Justice Department appreciated Texas leadership and Attorney General Ken Paxton for swiftly addressing a program that, in her view, treated American citizens unequally. Bondi urged other states to take note, emphasizing ongoing efforts to challenge state laws perceived as unconstitutional and discriminatory.
Texas was the first state to offer reduced tuition rates to undocumented students, starting in 2001, as reported by the Texas Tribune. The federal government cited a 2023 Court of Appeals ruling that raised concerns about potential legal conflicts with the state’s policy.
However, Judge Irma Carrillo Ramirez dissented, referencing the Supreme Court’s ruling in Murphy v. NCAA. She argued that the statute in question infringed on the Tenth Amendment by mandating states to act, rather than regulating individuals. Ramirez also indicated skepticism regarding whether a real dispute existed, highlighting that the district court ratified the agreement only hours after the lawsuit was filed.
Some defense attorneys echoed this sentiment, suggesting that the situation resembled friendly litigation since both Texas and the Department of Justice were aligned in their desired outcome. According to the President’s Alliance litigation tracker, this lawsuit is among several similar cases the Justice Department has pursued against state regulations. Notably, in March, a federal court in Minnesota rejected the government’s interpretation of comparable statutes.
