The Trump administration filed federal lawsuits against four states on Thursday, challenging laws that provide in-state tuition rates and financial aid to illegal immigrants while charging American citizens from other states significantly higher costs.

Federal Law Violation Alleged

The Justice Department targeted Oregon, Washington, New Mexico, and Arizona for allegedly violating federal law that prohibits colleges from providing benefits to illegal immigrants unless those same benefits are available to every American student nationwide. Assistant Attorney General Brett A. Shumate stated the department will not tolerate American students being treated like second-class citizens in their own country. These four lawsuits bring the total number of states facing legal challenges over such policies to 21.

The Trump administration has already secured victories in similar cases against Texas, Kentucky, Oklahoma, Nebraska, and Illinois. Associate Attorney General Stanley E. Woodward pledged continued legal action until illegal immigrants stop receiving benefits denied to American citizens, fulfilling President Trump’s campaign promise on this issue.

Massive Cost Differences Revealed

The financial disparities are substantial. At the University of Washington, in-state students pay $13,406 annually while out-of-state students face $44,460 charges for the 2026-2027 academic year. This creates a $31,054 discount for illegal immigrants who meet certain residency requirements, including obtaining a high school diploma in Washington and living there for at least one year. Arizona shows similar patterns, with Arizona State University charging in-state students $24,448 less than out-of-state Americans.

Court documents revealed that 432 illegal immigrants received in-state tuition benefits at Arizona State University in fall 2025, amounting to $10.5 million in reduced tuition costs. The Arizona Center for Investigative Reporting estimates more than 3,600 illegal immigrants annually could qualify for these discounted rates under Arizona’s current law, which voters approved through Proposition 308 in 2022.

State Responses and Political Context

Arizona Governor Katie Hobbs, a Democrat, defended the policy through a spokesperson who stated she remains a strong advocate for expanding higher education access to all Arizona students. The Arizona Board of Regents confirmed they follow state law and are reviewing the lawsuit with state leaders. In Oregon, the Justice Department specifically challenged a Rural Nurse Scholars Scholarship program that covers full tuition plus a $1,500 travel stipend, but only for in-state students, making illegal immigrants eligible while excluding American citizens from other states.