Appeals Court Upholds End of In-State Tuition for Illegal Immigrants in Texas

Fifth Circuit says federal law bars states from granting residency-based tuition benefits unavailable to all U.S. citizens

by Emmitt Barry, Worthy News Washington D.C. Bureau Chief

(Worthy News) – A federal appeals court has upheld the termination of in-state college tuition benefits for illegal immigrants in Texas, rejecting an attempt by students and advocacy groups to revive the state’s 24-year-old Dream Act.

In a 2-1 decision issued Thursday, July 9, the 5th U.S. Circuit Court of Appeals ruled that the outside groups could not intervene to defend the policy after Texas and the Trump administration agreed that it conflicted with federal immigration law.

Writing for the majority, Circuit Judge Jerry Smith said federal law prohibits states from granting postsecondary education benefits to illegal immigrants based on residency unless the same benefit is available to every U.S. citizen, regardless of where that citizen lives.

“Texas’s rule allowing illegal aliens to qualify for resident tuition” violated that federal restriction because American citizens living outside Texas were required to pay higher tuition rates, the court said.

Judge Irma Carrillo Ramirez dissented, arguing that the lower court acted too quickly when it entered its judgment only hours after the Trump administration filed its original lawsuit.

Texas Attorney General Ken Paxton had declined to defend the law, agreeing with Justice Department attorneys that the state policy was preempted by federal law.

“Texas and the Trump DOJ just secured another major victory for the rule of law,” Republican Gov. Greg Abbott said. “The Fifth Circuit upheld the end of in-state tuition for illegal immigrants in Texas.”

Texas enacted its Dream Act in 2001 under then-Gov. Rick Perry. The law allowed illegal immigrant students to receive in-state tuition after graduating from a Texas high school, living in the state for at least three years and pledging to seek permanent legal residency.

A federal judge blocked the program in June 2025 after the Trump administration sued Texas. The appeals court’s ruling leaves that judgment in place.

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