The U.S. Department of Justice has filed a lawsuit against the State of Texas over a decades-old law that allows undocumented immigrants to receive in-state tuition at public universities. Within hours of the DOJ’s complaint, a federal judge ruled in the department’s favor, halting enforcement of the policy established by the 2001 Texas Dream Act.
The lawsuit argues that Texas is in violation of the Constitution’s Supremacy Clause by extending benefits to undocumented immigrants that are not available to all U.S. citizens. The suit cites two 2025 executive orders signed by President Donald Trump (R), Ending Taxpayer Subsidization of Open Borders and Protecting American Communities from Criminal Aliens, as federal directives the Texas law allegedly conflicts with.
In a statement, U.S. Attorney General Pam Bondi (R) said the 2001 Texas law “blatantly conflicts” with federal immigration statutes and treats American citizens unfairly.
“Under federal law, schools cannot provide benefits to illegal aliens that they do not provide to U.S. citizens,” Bondi said. “The Justice Department will relentlessly fight to vindicate federal law and ensure that U.S. citizens are not treated like second-class citizens anywhere in the country.”
Later that day, U.S. District Judge Reed O’Connor (R) issued a ruling that validated the DOJ’s claims and “permanently enjoined” the state from continuing to offer in-state tuition to undocumented students. The ruling effectively ends enforcement of the Texas Dream Act for non-citizens without legal status.
Texas Attorney General Ken Paxton (R) released a statement following the decision, framing the outcome as a legal and political win.
“Today, I entered a joint motion along with the Trump Administration opposing a law that unconstitutionally and unlawfully gave benefits to illegal aliens that were not available to American citizens,” Paxton said. “Ending this discriminatory and un-American provision is a major victory for Texas.”
Originally passed unanimously in the Texas Legislature in 2001, the Texas Dream Act allowed all students who had lived in Texas for a set period, regardless of immigration status, to qualify for in-state tuition. The law has remained on the books for over two decades, even as it faced growing scrutiny from state and national conservatives.
A recent legislative attempt to repeal the law, Senate Bill 1798 authored by Texas Senator Mayes Middleton (R), cleared committee in May but ultimately stalled before reaching a full vote in the Senate.
Governor Greg Abbott has not yet responded publicly to the DOJ suit or the court’s ruling.
