Texas can stop giving in-state college tuition to illegal aliens: Appeals Court

A federal appeals court has upheld Texas' ban on in-state tuition benefits for illegal immigrants, keeping a decision in place that stopped the state’s Dream Act from being enforced.

The 5th US Circuit Court of Appeals rejected an attempt by students, immigration advocacy groups, and Austin Community College to intervene in the case and defend the 2001 law. The court ruled Thursday that their effort could not succeed because federal law prevents Texas from offering the benefit.

The Texas Dream Act allowed certain illegal immigrant students to pay resident tuition rates at public colleges and universities. To qualify, students had to live in Texas for at least three years, graduate from a Texas high school, and sign an affidavit stating they planned to seek lawful permanent residency as soon as possible.

The case began after the US Department of Justice filed a lawsuit against the law in June 2025, arguing it conflicted with federal immigration rules. Texas officials agreed with the challenge, and a federal judge later issued a permanent order blocking enforcement of the statute.

After the state declined to defend the law, Students for Affordable Tuition, La Union del Pueblo Entero (LUPE), Austin Community College, and University of North Texas student Oscar Silva sought to join the lawsuit. They argued they should be allowed to defend the program themselves.

In a 2-1 ruling, the appeals court disagreed. Judge Jerry E. Smith, writing for the majority, said federal law bars states from providing in-state tuition to illegal immigrants based on residency unless the same tuition benefit is available to all US citizens regardless of their state of residence.

The judges also ruled the groups could not appeal the previous consent judgment because they were never admitted as parties in the original case.

Judge Irma Carrillo Ramirez issued a dissent, arguing the lower court should have first examined whether there was a valid legal dispute because Texas and the federal government had already agreed on the outcome before the lawsuit was filed.

The ruling means students who previously received lower resident tuition rates under the Texas Dream Act will remain unable to access those benefits at public universities across the state.