Appeals Court Keeps Block on Texas In-State Tuition for Undocumented Students

A federal appeals court ruled Thursday that federal law prevents undocumented students from qualifying for in-state tuition benefits in Texas, one of 12 states where the Trump administration is seeking that outcome.

The 2-1 decision from the U.S. Court of Appeals for the 5th Circuit sided with Gov. Greg Abbott and the Trump administration. It upheld a district court decision from last year that brought an end to in-state tuition for undocumented students graduating from Texas high schools, which lawmakers passed with bipartisan support under the Texas Dream Act in 2001.

The case hinged on a federal statute from 1996 that prevents undocumented immigrants from getting higher education benefits unless it is available to all U.S. citizens regardless of where they live. Austin Community College, immigrant advocacy groups and a student had sought to intervene in the lawsuit and restore the law.

The 5th Circuit majority found that the federal law preempts the state law and that the groups could not intervene.

“In-state tuition is about one-tenth the amount of out-of-state tuition and represents a monetary form of assistance, not merely a hollow status,” Judge Jerry Smith, a Reagan-appointee, wrote in the majority opinion.

The end of the in-state tuition policy was swift. It came six hours after the federal government filed the lawsuit against Texas in June of last year, with Texas Attorney General Ken Paxton entering an agreement to halt the provisions.

“Texas and the Trump DOJ just secured another major victory for the rule of law,” Abbott wrote on X. “The Fifth Circuit upheld the END of in-state tuition for illegal immigrants in Texas.”

Tania Chavez Camacho, president and executive director of La Unión del Pueblo Entero, which was one of the groups petitioning the court, said in a statement that education “is a human right, no matter someone’s immigration status or background.”

“We are deeply disappointed in today’s ruling, but it will not deter us from continuing to advocate for equitable access to higher education for all Texans,” Camacho said.

The dissenting judge, Irma Carrillo Ramirez, pointed out the speedy timeline of the agreement between the state and Trump administration in her dissent. The Biden-appointee wrote that the lower court’s decision didn’t contemplate whether the federal law was unconstitutional under the 10th Amendment.

The Austin Community College Board of Trustees said in a statement the institution will follow the law.

“We continue to work with legal counsel to fully understand our next steps and the implications of the court’s decision,” the board said.