Trenton, NJ — A new federal lawsuit filed Thursday targets New Jersey’s policy allowing undocumented students to pay in-state college tuition, with the U.S. Department of Justice arguing the law unlawfully disadvantages American citizens and conflicts with federal rules.
The complaint, filed in the U.S. District Court for the District of New Jersey, seeks to halt state programs that extend reduced tuition rates and financial aid to students without legal immigration status. Federal officials say the policy creates unequal access to education benefits and must be stopped.
The lawsuit names multiple state entities, including the New Jersey Higher Education Student Assistance Authority and Acting Secretary of Higher Education Margo Chaly, as defendants.
Federal challenge centers on equal access to tuition benefits
According to the Justice Department, New Jersey’s law requires public colleges and universities to offer in-state tuition rates to students who meet residency requirements, regardless of their immigration status. The federal government argues that U.S. citizens who live outside New Jersey are not eligible for those same reduced rates, creating what it describes as discriminatory treatment.
The complaint also challenges state-funded financial aid and scholarship programs that are available to undocumented students.
Associate Attorney General Stanley Woodward framed the issue as one of fairness in access to education.
“Imagine being denied the opportunity of education in your own country,” Woodward said. “By granting illegal aliens in-state tuition, the state of New Jersey is doing just that.”
Assistant Attorney General Brett A. Shumate of the DOJ’s Civil Division said the case hinges on federal law governing public benefits.
“This is a simple matter of federal law: in New Jersey and nationwide, colleges cannot provide benefits to illegal aliens that they do not provide to U.S. citizens,” Shumate said. “This Department of Justice will not tolerate American students being treated like second-class citizens in their own country.”
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Key Points
• DOJ filed lawsuit April 30 challenging New Jersey’s in-state tuition policy for undocumented students
• Complaint seeks to block tuition discounts and financial aid programs tied to immigration status
• Case marks the ninth federal lawsuit targeting similar policies across multiple states
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Part of broader national legal effort
The New Jersey case is the ninth lawsuit in a broader campaign by the Justice Department to challenge state-level policies that extend public education benefits to undocumented immigrants.
“Federal law is clear: states cannot give benefits to illegal aliens that they deny to U.S. citizens. Today, we are challenging New Jersey’s unlawful tuition and financial aid policies because American students should not be treated as second-class. Period,” Shumate said on X today.
Federal officials say similar legal actions in Texas, Kentucky, and Oklahoma have already resulted in court orders blocking comparable laws. Additional lawsuits remain pending in Illinois, Minnesota, Virginia, Nebraska, and California.
The DOJ argues that these state policies create incentives for illegal immigration while offering taxpayer-funded benefits not universally available to U.S. citizens.
The legal effort aligns with a broader federal push to restrict access to public benefits based on immigration status, particularly in higher education.
What the lawsuit seeks to change
At the center of the complaint is a request for the court to issue an injunction preventing New Jersey from continuing to enforce its tuition and financial aid laws as currently written.
If granted, the injunction would require colleges and universities across the state to revise how they determine eligibility for in-state tuition rates and state-funded financial assistance.
The federal government is also asking the court to declare the existing laws unconstitutional and require compliance with federal standards governing public benefits.
While the DOJ frames the case as a legal and constitutional matter, the outcome could have immediate implications for thousands of students currently enrolled in New Jersey institutions under the existing policy.
Ongoing debate over education and immigration policy
Policies granting in-state tuition to undocumented students have long been a point of contention nationwide. Supporters argue such measures expand access to education for students who have grown up in the U.S. and contribute to local communities. Critics, including federal officials in this case, argue the policies unfairly prioritize non-citizens over out-of-state American students.
New Jersey has been among several states that adopted residency-based tuition policies, allowing students who meet local criteria—such as attending and graduating from in-state high schools—to qualify for reduced tuition rates.
The DOJ’s lawsuit does not address broader immigration policy but focuses narrowly on whether these education benefits violate federal law governing eligibility and equal treatment.
What happens next
The case now moves to federal court in New Jersey, where a judge will determine whether to grant the requested injunction. No hearing date has been publicly announced.
Until a ruling is issued, New Jersey’s current tuition and financial aid policies remain in effect.
The outcome could influence similar cases across the country, particularly as multiple lawsuits challenging comparable laws continue to move through federal courts.
Current status: The lawsuit has been filed, and the court has not yet issued any rulings on the requested injunction or the constitutionality of New Jersey’s law.
