OAN Staff Brooke Mallory
2:28 PM – Friday, November 21, 2025
The Department of Justice (DOJ) filed a federal lawsuit against the state of California and its public university systems in relation to Golden State policies that extend in-state tuition rates, state-funded scholarships, and subsidized loans to illegal aliens.
This action marks the third lawsuit against California in a single week by the DOJ, following suits over other immigration-related policies.
“The United States is challenging California laws providing in-state tuition, scholarships, and subsidized loans for illegal aliens. These laws unconstitutionally discriminate against U.S. citizens who are not afforded the same reduced tuition rates, scholarships, or subsidies, create incentives for illegal immigration, and reward illegal immigrants with benefits that U.S. citizens are not eligible for, all in direct conflict with federal law,” the release states.
In addition to misusing taxpayer funds, the DOJ maintains that California’s policies violate federal law and the U.S. Constitution by discriminating against out-of-state U.S. citizens, incentivizing illegal immigration, and rewarding illegal aliens with taxpayer-funded benefits unavailable to all Americans.
California’s relevant statutes include:
- AB 540 (2001): Allows illegal alien students who attended a California high school for at least three years and graduated (or earned a GED) to qualify for in-state tuition rates at public colleges and universities, regardless of immigration status. Without this, they would pay out-of-state rates, which can be 2–3 times higher (e.g., ~$15,000/year vs. ~$45,000/year at UC campuses).
- California Dream Act (AB 130 and AB 131, 2011–2012): Expands eligibility for state financial aid, including scholarships (e.g., Cal Grants) and subsidized loans, to illegal alien students meeting residency and academic criteria. This covers about 9,500 undocumented students in the CSU system and an estimated 70,000 in community colleges.
These laws affect roughly 80,000–100,000 undocumented students across California’s public higher education system, which enrolls over 1.5 million students total.
The DOJ’s core claims, as outlined in the complaint, explain that this is a “Violation of Federal Law (8 U.S.C. § 1623).” This 1996 statute, the Illegal Immigration Reform and Immigrant Responsibility Act, prohibits states from providing in-state tuition to illegal aliens unless the same rate is offered to all U.S. citizens regardless of residency. The suit further argues that California’s laws create a “preferential” benefit for illegal alien residents over out-of-state citizens, who must pay higher rates despite being legally present in the country.
The DOJ also notes that this is unconstitutional discrimination, meaning the “unequal treatment” denies equal protection under the 14th Amendment to U.S. citizens from other states, effectively subsidizing illegal immigration with taxpayer dollars.
By offering these benefits, California “rewards” unlawful presence of illegal aliens, conflicting with federal immigration enforcement and executive orders like “Ending Taxpayer Subsidization of Open Borders” — signed in February this year.
“California is illegally discriminating against American students and families by offering exclusive tuition benefits for non-citizens,” said Attorney General Pamela Bondi. “This marks our third lawsuit against California in one week — we will continue bringing litigation against California until the state ceases its flagrant disregard for federal law.”
Governor Gavin Newsom’s office is anticipated to argue federal overreach into state education funding, especially since California covers around 13% of UC/CSU budgets, with the rest being from tuition/state appropriations.
Meanwhile, left-wing critics of the lawsuit, including progressive immigrant rights groups, called it a “cruel attack” on vulnerable students — potentially forcing 10,000+ to drop out if successful.
If the DOJ prevails, illegal aliens could face immediate tuition hikes, loss of around $100 million in annual aid, and barriers to degrees.
Eight other U.S. states currently offer similar benefits, and if the lawsuit prevails, the win could trigger more suits — reshaping access to higher education for around 400,000 undocumented students nationwide. Nonetheless, the case is still in its early stages, with a hearing likely in early 2026.
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