DOJ targets California law that gives illegal aliens lower tuition rates than American students

For over two decades, the California Dream Act has required public colleges and universities to offer in-state tuition rates to illegal alien students who meet certain requirements. The Dept. of Justice is suing to end this policy.

Out-of-state American students in the University of California (UC) system pay more than three times the tuition that illegal aliens pay under the California Dream Act.

In California, illegal aliens are eligible to pay lower tuition rates than out-of-state American students. The Department of Justice (DOJ) is suing the state to end this policy. 

For over two decades, the California Dream Act has required public colleges and universities to offer in-state tuition rates to illegal alien students who meet certain requirements.

Enacted in 2001 through Assembly Bill 540, the law allows illegal aliens living in California to receive in-state tuition rates at public colleges and universities even if they do not hold legal status under U.S. immigration law. Meanwhile, American citizens from other states are charged higher out-of-state tuition rates.

That policy is now the subject of a federal lawsuit.

On Nov. 20, the DOJ filed a lawsuit against California Gov. Gavin Newsom over state laws that provide discounted tuition, scholarships, and resources to illegal alien students. The lawsuit points to the California Dream Act and argues that the policy violates federal immigration law by granting benefits to illegal aliens that are not equally offered to U.S. citizens from other states.

[RELATED: Fight heats up over illegal immigrants’ lower tuition rates: WATCH]

Out-of-state American students in the University of California (UC) system pay more than three times the tuition that illegal aliens pay under the California Dream Act.

The UC system, which is the state’s flagship public university network, includes ten campuses, nine of which offer undergraduate degrees. UC undergraduate tuition for California residents is an estimated $16,000 for the 2026-2027 school year. Out-of-state tuition for American students is an estimated $55,000.

Estimated tuition rates for 2026-2027 school year obtained from University of California (UC) website.

California currently enrolls an estimated 100,000 illegal alien students across the state’s taxpayer-funded public higher education system, which includes the UC system, California State University (CSU) system, and community colleges.

Additionally, each year an estimated 14,000 illegal alien students graduate from California high schools and become eligible for in-state tuition benefits.

To qualify for in-state tuition rates under the California Dream Act, illegal alien students must have attended a California school for at least three years and either graduated from a California high school or earned an equivalent credential, such as a GED.

Illegal aliens who have attained an associate degree from a California community college or accumulated enough credits to transfer to a UC or CSU campus are also eligible.

[RELATED: CSU spends $42M in taxpayer funds on free legal services, ‘deportation defense’ for illegal immigrants]

California is the sixth state the DOJ has targeted for providing in-state tuition rates to illegal alien students. More than 20 states and Washington D.C. continue to offer these benefits. 

“California is illegally discriminating against American students and families by offering exclusive tuition benefits for non-citizens,” Attorney General Pamela Bondi wrote in a press release.

Gov. Newsom’s team appears ready to fight back. 

“Good luck, Trump. We’ll see you in court,” a spokesperson for the governor’s office told Inside Higher Ed.

Campus Reform has contacted Gov. Gavin Newsom’s Office, the University of California (UC), and California State University (CSU) for comment.

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