Appeals Court Blocks Texas Undocumented Student Tuition

A federal appeals court has upheld a ruling that effectively ends a Texas law allowing some undocumented students to pay in-state tuition at public colleges, a policy that had been in place for nearly a quarter-century. The 5th U.S. Circuit Court of Appeals, in a 2-1 decision issued on July 9, 2026, affirmed a lower court's refusal to allow outside groups to intervene and defend the law, finding it preempted by federal statute.

The case centered on the Texas Dream Act, passed with bipartisan support in 2001. It allowed students without legal immigration status to qualify for reduced in-state tuition rates if they graduated from a Texas high school, lived in the state for at least three years, and signed an affidavit pledging to seek permanent residency when eligible. The Justice Department sued Texas in June 2025, arguing the state law violated a 1996 federal statute that prohibits states from giving higher education benefits based on residency to people unlawfully present unless the same benefit is available to all U.S. citizens regardless of where they live.

Texas Attorney General Ken Paxton agreed with the federal government's position, leading to a swift resolution. A...