The Trump administration has filed a lawsuit against California, challenging the state’s practice of offering in-state tuition, scholarships, and state-funded financial aid to students who are not legally present in the United States. The suit was filed Thursday in the U.S. District Court for the Eastern District of California and names as defendants the state government, its top officials, and both major public university systems: the University of California and California State University.
According to federal officials, these policies harm U.S. citizens and encourage illegal immigration. The lawsuit is part of a broader effort by President Donald Trump’s administration to contest similar laws across several states. Similar legal actions have targeted Illinois, Oklahoma, Minnesota, Kentucky, and Texas. As a result of previous lawsuits, Texas ended its longstanding law permitting in-state tuition for undocumented students earlier this year; Florida eliminated a comparable policy last year.
Supporters of California’s approach argue that their tuition breaks do not violate federal law because they apply equally to U.S. citizens who meet residency requirements—such as being graduates from California high schools—and to non-citizen students under similar circumstances. The California Dream Act allows eligible students to apply for state-funded financial aid as well.
Many recipients of these benefits were brought to the United States as children by their parents. Advocates assert that these individuals are integral members of their communities.
This lawsuit follows executive orders issued by President Trump directing federal agencies to halt public benefits for immigrants without legal status and challenge local or state policies perceived as favoring those immigrants over citizens.
Attorney General Pamela Bondi stated: “California is illegally discriminating against American students and families by offering exclusive tuition benefits for non-citizens. This marks our third lawsuit against California in one week — we will continue bringing litigation against California until the state ceases its flagrant disregard for federal law.”
The Justice Department has also recently sued over other issues involving California laws—including efforts to block new congressional district boundaries approved by voters and restrictions on federal agents operating within the state.
Responding to these actions, Governor Gavin Newsom’s office released a statement: “The DOJ has now filed three meritless, politically motivated lawsuits against California in a single week. Good luck, Trump. We’ll see you in court.”
The University of California defended its existing policies: “While we will, of course, comply with the law as determined by the courts, we believe our policies and practices are consistent with current legal standards,” according to a statement from university officials.
This legal dispute comes shortly after the California Supreme Court declined to review a ruling that found UC’s ban on campus jobs for undocumented students discriminatory—a decision that university leaders said complicates negotiations with federal authorities following funding withdrawals.
Currently, the University of California faces suspensions on certain federal grants and is contending with White House demands for payment of a $1 billion fine related to allegations such as antisemitism and improper consideration of race during admissions at UCLA.
California State University remains one of the largest higher education systems nationally with more than 460,000 enrolled students; over 25 percent are first-generation college attendees.
