DOJ sues 4 states over in-state tuition and aid policies
The Justice Department filed four civil lawsuits Thursday, August 27, 2026, challenging state policies that allow some students without lawful immigration status to receive in-state tuition or state-funded higher-education aid.
The complaints target Arizona, New Mexico, Oregon and Washington. DOJ alleges that the policies conflict with Section 1623(a) of the 1996 Illegal Immigration Reform and Immigrant Responsibility Act, codified at 8 U.S.C. § 1623(a). The provision says a student who is not lawfully present cannot receive a postsecondary benefit based on state residence unless U.S. citizens from other states can receive the same benefit without regard to their residence.
The filings do not immediately change tuition bills or financial-aid awards. They begin civil litigation, and the states and other defendants will have an opportunity to respond before federal courts decide whether any challenged provisions should be blocked.
What DOJ is asking courts to do
The department is seeking declarations that the challenged state laws, regulations and policies are preempted by federal law or unconstitutional under the Constitution’s Supremacy Clause. It also seeks permanent injunctions preventing the states and related agencies from enforcing the provisions.
DOJ says the four complaints bring its total to 21 states sued over similar tuition or aid policies. The department points to favorable orders or settlements in several earlier cases, while other states are contesting its interpretation of federal law. Those cases have not produced one nationwide ruling resolving every state program.
What was filed
The Arizona complaint was filed in the U.S. District Court for the District of Arizona against the state and the Arizona Board of Regents. The Washington complaint, case No. 2:26-cv-03041, was filed in the U.S. District Court for the Western District of Washington and names the state, public higher-education entities and the Washington Student Achievement Council. The Oregon complaint, case No. 3:26-cv-01781-JR, was filed in the U.S. District Court for the District of Oregon. DOJ’s announcement also identifies New Mexico as a defendant in a separate complaint filed August 27.
Programs differ by state
The policies at issue are not identical. In general, the complaints challenge resident-tuition classifications for students who meet requirements such as attending school in the state, graduating from a state high school or maintaining state residency. Depending on the state and program, DOJ also challenges grants, scholarships and student loans administered through state agencies or public colleges.
In Washington, the complaint names the Washington Student Achievement Council, which administers postsecondary grants, loans and scholarships. DOJ challenges resident-tuition rules as well as state financial-aid provisions and the Undocumented Student Support Loan Program. The complaint alleges that U.S. citizens from other states are not eligible for the same state-funded loan program.
Oregon’s complaint addresses resident-tuition rules for public universities and community colleges, including rules used by individual community-college boards. It also challenges state and institutional aid programs, including the Oregon Promise Scholarship and certain scholarships available through public universities and Oregon Health and Science University. The New Mexico complaint is part of the same broader challenge, but the programs and legal provisions at issue must be evaluated under that state’s specific laws and regulations.
Arizona case highlights the potential cost
Arizona’s lawsuit focuses on Proposition 308, a measure approved by voters in 2022. The law expanded eligibility for in-state tuition at public universities and community colleges for certain students who attended and graduated from an Arizona high school, including students without lawful immigration status. The measure also repealed a prior restriction on state-funded financial aid eligibility, according to DOJ’s complaint.
DOJ cited an Arizona Center for Investigative Reporting estimate that at least 720 undocumented students received in-state tuition in fall 2025, including 432 at Arizona State University. The department’s complaint alleges that the roughly $24,000 difference between resident and nonresident tuition at ASU translated into about $10.5 million in reduced tuition for those students in that year.
Those figures are estimates cited by DOJ and allegations in the complaint, not independent findings by a court or a final determination of the amount of public support involved.
The legal question ahead
The central dispute is how Section 1623(a) applies when a state grants resident tuition or another postsecondary benefit to qualifying students without lawful immigration status but does not make the same benefit available to U.S. citizens who live outside the state.
DOJ argues that this structure violates federal law and is preempted under the Supremacy Clause. States and supporters of the programs dispute the department’s interpretation. The courts will have to examine the federal statute, the precise wording of each state’s law or regulation and the evidence developed in each case. A ruling in one state may not automatically resolve every other state’s program.
What students should watch
Students and families in Arizona, New Mexico, Oregon and Washington should not assume their eligibility has changed because of the August 27 filings. Colleges and state financial-aid offices remain the best sources for current instructions about residency, tuition classification and applications.
The next significant steps are likely to include responses from the defendants, case scheduling, motions for preliminary relief and decisions by the district courts. Appeals could follow. Depending on the rulings, the litigation could affect tuition classifications, grants, scholarships and student-loan programs in the four states and influence similar policies elsewhere.
Sources
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