US Justice Department sues Penn State over undocumented students’ tuition

The United States Department of Justice has sued Pennsylvania State University, accusing the institution of violating federal law by offering in-state tuition rates to undocumented students while denying the same reduced rates to all US citizens.

The lawsuit, filed on Thursday, argues that the university’s tuition policy discriminates against citizens.

Currently, undocumented students can qualify for in-state tuition if they meet Penn State’s residency standards.

But prosecutors have rejected that policy, saying it violates a federal law that bars “preferential treatment” in higher education for undocumented immigrants, unless the same benefits are available to US citizens.

In the US, public universities typically charge lower tuition to students who are residents of the state where the institution is located, while students from other states pay higher rates.

Proponents of such policies say in-state tuition helps prevent “brain drain”, wherein students might leave the state to attend universities elsewhere. They also reward residents of the state, who contribute taxes to the education system.

Advocates argue the same benefits should be directed towards undocumented students, who are often brought to the country as minors. Making undocumented students eligible for in-state tuition can also reduce the barriers they face to education.

But the Justice Department is seeking a court order preventing Penn State from continuing to offer in-state tuition rates to undocumented students, including those living in Pennsylvania, regardless of their immigration status.

It is also seeking to block the university from adopting future tuition policies that give undocumented students “preferential treatment” over US citizens.

“Congress made a deliberate policy choice that states and their public institutions may not grant tuition benefits to illegal aliens unless those same benefits are made to all US citizens,” Brett Shumate, assistant attorney general of the Justice Department’s Civil Division, said in a statement.

The lawsuit is part of a broader campaign under President Donald Trump to challenge state policies granting reduced tuition to undocumented students.

Since returning to office for a second term in 2025, Trump has sought to clamp down on undocumented immigration, promising to lead the largest deportation effort in US history.

The Justice Department said Thursday’s filing brings the total number of lawsuits it has brought challenging such policies to 27. It also said six cases in Texas, Kentucky, Oklahoma, Nebraska, Illinois and Kansas resulted in court orders permanently blocking similar tuition policies.

In Thursday’s lawsuit, prosecutors called such policies unconstitutional. They also argued that laws like the 1996 Personal Responsibility and Work Opportunity Reconciliation Act ban “public benefits from serving as an incentive” for undocumented immigration.

“Federal law prohibits illegal aliens from being eligible to receive postsecondary education benefits based on residence within a state if such benefits are denied to US citizens residing in other states,” the lawsuit said.

“There are no exceptions. Yet, Pennsylvania State University has ignored this congressional prohibition.”

According to Penn State’s current residency requirements, non-citizen applicants must have attended an accredited Pennsylvania high school for at least four years and graduated from one to qualify for in-state tuition.

Penn State said it was aware of the complaint and was reviewing it.