The Trump administration has taken legal action against New York, aiming to prevent undocumented immigrants from accessing reduced tuition rates and state-funded financial assistance at public colleges. The lawsuit, filed by the Department of Justice (DOJ), alleges that New York's policy unlawfully discriminates against U.S. citizens who reside in other states, violating federal statutes.
The DOJ filed similar suits against Connecticut and Vermont on August 10, challenging what it calls the "unlawful" extension of in-state tuition benefits to undocumented students. The department asserts that these state policies conflict with the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, which bars states from granting postsecondary education benefits based on residency to undocumented immigrants unless the same benefits are offered to all U.S. citizens, regardless of their state of residence.
Associate Attorney General Stanley Woodward said in a statement, "Congress long ago made clear that States cannot put illegal aliens over our Nation's own citizens." Assistant Attorney General Brett Shumate added, "This Department of Justice will not tolerate American students being treated like second-class citizens in their own country."
The legal offensive is part of a broader effort by the administration to curb what it sees as state-level incentives for illegal immigration. The DOJ has already secured victories in Texas, Kentucky, Oklahoma, Nebraska, and Illinois, with similar cases pending in Minnesota, Virginia, California, New Jersey, Kansas, Massachusetts, Rhode Island, Maryland, and Colorado. The actions are rooted in two executive orders signed by President Trump in 2025—Executive Order 14218, "Ending Taxpayer Subsidization of Open Borders," and Executive Order 14287, "Protecting American Communities from Criminal Aliens"—which direct federal agencies to challenge state policies that provide benefits to undocumented immigrants.
New York's policy stems from the José Peralta New York State DREAM Act, passed in 2019 and named after the late state lawmaker, which connects eligible undocumented students to state-administered grants and scholarships. The state has historically provided safety net benefits to undocumented residents, citing a 1938 state constitutional mandate to care for all needy inhabitants. These services are funded through local tax revenue, as a 1996 federal welfare law—the Personal Responsibility and Work Opportunity Reconciliation Act—prohibits using federal dollars for noncitizens.
Supporters of New York's policy argue that undocumented immigrants contribute significantly to the state's economy and offset population declines. Research from the American Immigration Council indicates that foreign-born New Yorkers pay property taxes and help sustain local communities. Some studies also suggest that the state spends less on college students who support themselves than on those living with their parents.
The lawsuit has drawn sharp reactions from immigration advocates and state officials. The Office of New York Attorney General Letitia James said officials had not yet seen the lawsuit, as an "as-filed copy" was not public at press time. Legal experts expect a protracted battle, with the outcome likely to shape the future of in-state tuition policies for undocumented students nationwide.
The DOJ's aggressive stance is part of a wider crackdown on immigration-related policies, including visa revocations and other enforcement measures. The administration's legal strategy has also faced legal and political roadblocks, as some states push back against federal overreach. Meanwhile, the Senate's recent recess, which included confirming Attorney General Todd Blanche, signals continued Republican support for the administration's immigration agenda.
