The Trump administration filed federal lawsuits against four states on Thursday, challenging state laws that provide in-state tuition rates and financial aid to illegal immigrants while denying the same benefits to U.S. citizens from other states.
Federal Law Violation Alleged
The Justice Department targeted Oregon, Washington, New Mexico, and Arizona for violating federal law requiring that any higher education benefits given to illegal immigrants must also be available to all American students nationwide. Assistant Attorney General Brett A. Shumate stated the department will not tolerate American students being treated like second-class citizens in their own country. The lawsuits bring the total number of states facing legal challenges over such laws to 21.
The administration has already secured victories in similar cases against Texas, Kentucky, Oklahoma, Nebraska, and Illinois. Associate Attorney General Stanley E. Woodward, Jr. vowed the enforcement efforts will continue until illegal immigrants no longer receive benefits denied to American citizens.
Significant Cost Differences at Stake
The financial disparities between in-state and out-of-state tuition prove substantial across the states sued. At the University of Washington, residents pay $13,406 annually while out-of-state students face charges of $44,460 for the 2026-2027 school year. This creates a potential $31,054 discount for illegal immigrants who meet residency requirements including earning a high school diploma in-state and pledging to seek permanent residency when eligible.
Arizona State University shows a $24,448 gap between resident and non-resident rates. Federal attorneys allege that 432 illegal immigrants received in-state benefits at ASU in fall 2025, totaling $10.5 million in reduced tuition. The Arizona Center for Investigative Reporting estimates more than 3,600 illegal immigrants annually could qualify under current state law.
State Responses and Background
Arizona voters approved Proposition 308 in 2022, allowing illegal immigrants meeting certain conditions to access in-state tuition rates. A spokesperson for Governor Katie Hobbs defended her position as a strong advocate for expanding higher education access for all Arizona students. The Arizona Board of Regents said they follow state law and are reviewing the lawsuit with state leaders.
Oregon’s lawsuit includes challenges to the Rural Nurse Scholars Scholarship at Oregon Health & Science University, which provides full tuition coverage and a $1,500 travel stipend exclusively to in-state students. The Justice Department contends state law makes illegal immigrants eligible for this benefit while excluding American citizens from other states.
