In a significant shift for higher education policy across Texas, the Texas Higher Education Coordinating Board (THECB) has instructed all public colleges and universities to identify students who are in the country illegally and reclassify them as out-of-state students for tuition purposes. The directive follows a federal judge’s decision earlier this month to strike down the Texas Dream Act — a long-standing law that allowed certain illegal immigrants to pay in-state tuition at Texas colleges.
The court ruling came swiftly after the U.S. Department of Justice (DOJ) filed a complaint arguing that the Texas Dream Act conflicts with federal immigration law. Texas Attorney General Ken Paxton filed a joint motion in agreement with the DOJ, and the case was resolved in a matter of hours. The judge’s order invalidated the law, effectively ending in-state tuition benefits for students who are not legally present in the U.S.
In response, THECB Commissioner of Higher Education Wynn Rosser sent a letter to university presidents across the state. In it, Rosser instructed institutions to “assess the population of students who have established eligibility for Texas resident tuition … who are not lawfully present” and reclassify them as non-residents, which will significantly increase their tuition costs starting in the fall 2025 semester.
The change is expected to affect thousands of students who were previously eligible for in-state tuition under the Texas Dream Act, which was passed in 2001. That law allowed illegal immigrants who graduated from Texas high schools and lived in the state for at least three years to pay the same tuition rates as Texas residents.
Most Texas universities do not collect immigration documentation from students but instead rely on a set of “Core Residency Questions” that help determine whether an applicant qualifies for in-state tuition. However, those questions do not explicitly verify legal immigration status, creating a challenge for universities now tasked with determining which students fall under the new legal classification.
The ruling and subsequent directive have sparked immediate backlash from immigrant rights groups and Democratic lawmakers. The Mexican American Legal Defense and Educational Fund (MALDEF) filed a motion to join the case in order to challenge the ruling and seek an appeal.
On June 6, State Rep. Donna Howard (D-Austin) and 38 other Democratic legislators sent a letter to THECB urging the creation of a new “provisional classification” for what they called “first-generation resident tuition” — a temporary status that would allow affected students to retain in-state tuition until the Legislature can address the issue in its upcoming session.
“This action would not override statute but would provide a critical bridge,” the lawmakers wrote, calling the timing “especially cruel and shortsighted” with the fall semester just weeks away.
With the fall 2025 semester quickly approaching, universities are now under pressure to identify students impacted by the ruling and notify them of their new tuition classification. Non-resident tuition rates are significantly higher than in-state rates — in some cases, triple the cost — and many students may be forced to withdraw or reduce their course loads due to financial constraints.
Supporters of the ruling, including Paxton’s office, argue that granting in-state tuition to individuals in the country illegally is a misuse of state resources and an incentive for further illegal immigration. Opponents argue that the students impacted have grown up in Texas, often consider it their only home, and are being unfairly punished for decisions made by their parents.
Unless the ruling is overturned or paused on appeal, universities must begin enforcing the policy immediately. Student advocates are calling for institutions to delay implementation or offer emergency financial aid, but no such measures have been formally announced.
