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Justice Department Sues Penn State Over Tuition Rules for Undocumented Students

The federal government argues the university’s policy favors non-citizens over out-of-state citizens, a move that has sparked 27 similar lawsuits nationwide.

By Andrew Kovalenko ·

Illustration for: Justice Department Sues Penn State Over Tuition Rules for Undocumented Students
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The United States Department of Justice filed a lawsuit against Pennsylvania State University on Thursday, seeking a court order to stop the school from charging in-state tuition rates to undocumented students. The complaint alleges the policy violates federal law by extending benefits to non-citizens while denying them to U.S. citizens living in other states.

Under current rules, undocumented students who meet specific residency standards qualify for lower tuition. Prosecutors argue this creates an unlawful preference. They claim that public institutions may not grant tuition benefits to undocumented immigrants unless those same benefits are available to all U.S. citizens, regardless of where the citizens reside.

Brett Shumate, assistant attorney general of the Justice Department’s Civil Division, said Congress deliberately chose to prevent states from offering such benefits to undocumented students without extending them to all citizens. Shumate stated that the university has ignored this congressional prohibition.

The lawsuit is part of a wider effort by the Trump administration to challenge state tuition policies. Since returning to office in 2025, the administration has focused on tightening rules for undocumented immigration. The Justice Department reported that Thursday’s filing brings the total number of such lawsuits to 27. Six of those cases in Texas, Kentucky, Oklahoma, Nebraska, Illinois, and Kansas have resulted in permanent court orders blocking similar policies.

The federal complaint cites the 1996 Personal Responsibility and Work Opportunity Reconciliation Act. It argues that public benefits should not serve as an incentive for undocumented immigration. The lawsuit contends that federal law bans postsecondary education benefits based on state residence if those benefits are denied to out-of-state citizens.

Penn State’s residency requirements for non-citizens include attending an accredited Pennsylvania high school for at least four years and graduating from that school. The university acknowledged the complaint on Thursday and said it is reviewing the details. The case adds to a series of legal battles over how public universities define in-state status for students without full citizenship.

The Department of Justice is asking the court to prevent Penn State from continuing its current tuition structure. It also seeks to block the university from adopting future policies that give undocumented students preferential treatment over U.S. citizens.

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