Justice Department sues Maryland over in-state tuition for undocumented students

The U.S. Justice Department has sued Maryland over a state policy that allows certain undocumented students who attended and graduated from Maryland schools to receive in-state or in-county tuition rates.

The case, United States v. Maryland, was filed July 16, 2026, in the U.S. District Court for the District of Maryland. The defendants are the state, the Maryland Higher Education Commission and the University System of Maryland Board of Regents.

Filing the complaint did not automatically change tuition bills, eligibility or financial-aid access. The Maryland pathway remains operative unless the court issues an order requiring the state or public colleges to stop enforcing it.

What the Justice Department alleges

DOJ alleges that Maryland’s tuition rules conflict with 8 U.S.C. §1623(a), a federal law that limits residence-based postsecondary education benefits for people who are not lawfully present in the United States when equivalent benefits are denied to U.S. citizens from other states.

The department argues that Maryland gives qualifying students access to resident tuition based on their Maryland schooling and residence while generally charging higher rates to U.S. citizens who live outside Maryland. DOJ also challenges a Maryland regulation directing community colleges not to let immigration status prevent a qualifying person from establishing Maryland residency for tuition purposes.

Those are allegations in a complaint, not findings by the court. DOJ asks for declaratory relief stating that the challenged provisions are preempted by federal law and for permanent injunctions barring Maryland, MHEC and the affected higher-education institutions from enforcing them. The department also seeks costs, fees and other relief the court considers appropriate.

Who qualifies under Maryland law

Maryland’s Education Article §15-106.8 generally exempts an individual from the out-of-state tuition rate if the individual attended a Maryland public or nonpublic secondary school and graduated from one or earned an equivalent diploma in Maryland.

The student must register as an entering student at a Maryland public institution within six years of graduating or receiving the equivalent diploma. A student who is not a permanent resident must provide an affidavit stating that the student will apply to become a permanent resident within 30 days after becoming eligible to do so. Students required to register with the Selective Service System must provide documentation of compliance.

At public four-year institutions, a qualifying student may receive a rate equivalent to resident tuition. At community colleges, the student may qualify for the in-county rate if additional county-based conditions are met, including a connection to the county shown through a Maryland income-tax return or the location of the student’s qualifying secondary school.

What changed July 1

Chapter 799, House Bill 1530, took effect July 1, 2026, after Gov. Wes Moore approved it May 26. The law repealed the requirement that a student or the student’s parent or guardian document Maryland income-tax filings for the prior three-year or two-year period before the academic year in which the exemption would apply.

The change did not eliminate every residency-related condition. Chapter 799 revised continuing proof-of-residency rules, and the law still contains county-based conditions for community-college in-county tuition. Institutions may also require documentation needed to establish eligibility under the statute.

Nearly $9 million in reported tuition savings

A July 2025 MHEC report said students at 24 public postsecondary institutions benefited from the exemption during the summer 2024 through spring 2025 reporting period. The institutions included 15 community colleges and nine public four-year institutions.

MHEC reported total student tuition savings of $8,957,356: $2,365,732 at community colleges and $6,591,624 at public four-year institutions. The figure represents reported student savings from the tuition exemption, not a state expenditure or taxpayer-cost estimate.

MHEC reported student counts by academic term rather than an unduplicated annual headcount because some students may have enrolled across multiple terms. The agency said the term-level aggregation also protects student privacy.

Tuition benefits and state aid are separate

The tuition exemption is separate from federal financial aid. According to the MHEC One App FAQ, qualifying undocumented students may apply for listed Maryland grants and scholarships through the Maryland College Aid Processing Portal.

The state programs listed by MHEC include the Educational Assistance Grant, Guaranteed Access Grant, Campus Based Educational Assistance Grant, Part-Time Grant, Maryland Community College Promise Scholarship, Near Completer Grant, Cybersecurity Public Service Scholarship Award, Legislative Scholarship Program and Richard W. Collins III Leadership with Honor Scholarship.

U.S. citizens, permanent residents and other eligible noncitizens generally use the FAFSA, which can also provide access to federal aid. MHEC says an eligible undocumented student may complete the One App without a Social Security number, but must meet the Maryland tuition-exemption requirements. Application deadlines depend on the grant or scholarship program, and MHEC says application information is confidential except when disclosure is required by law.

Maryland says it will defend the law

Maryland Attorney General Anthony Brown said July 16 that the state was reviewing the complaint and would respond through the courts. His statement did not announce a change to the tuition policy.

The immediate practical question for students and colleges is whether the federal court issues a preliminary or permanent injunction. The complaint itself requests permanent injunctive relief, but the available record reviewed for this article does not establish that a court has ordered Maryland or its institutions to stop enforcing the policy.

Until a court order or another official change, the challenged Maryland pathway remains operative. The case could affect tuition classifications, state-aid applications and institutional procedures for current and future students, but its outcome remains pending.

Sources

• United States v. Maryland complaint
• Maryland Chapter 799, House Bill 1530
• MHEC 2025 tuition-exemption report
• Maryland Attorney General response

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