Federal lawsuit threatens in-state tuition access for undocumented students in Kentucky

Undocumented students in Kentucky may soon face a major barrier to higher education, as a new federal lawsuit challenges their eligibility for in-state tuition. The U.S. Department of Justice, under the Trump administration, has filed a suit arguing that Kentucky’s current policy—allowing undocumented students to pay reduced tuition at public colleges and universities—violates federal immigration law.The regulation under scrutiny has enabled many undocumented students, often referred to as "Dreamers," to afford college by qualifying for in-state tuition if they graduated from a Kentucky high school. Without this provision, many would be required to pay significantly higher out-of-state rates, placing college out of reach for a large number of young people who have grown up in the state.

The basis of legal challenge

The federal lawsuit claims that Kentucky’s tuition policy conflicts with federal immigration laws that bar states from offering public benefits—such as lower tuition rates—to undocumented immigrants unless those same benefits are available to all U.S.

citizens, regardless of where they reside. Since out-of-state U.S. citizens are not eligible for Kentucky’s in-state tuition, the Justice Department argues the regulation is unlawful.This legal action mirrors a similar federal case in Texas, where a court ruling recently blocked a comparable policy. That ruling has encouraged broader efforts to challenge in-state tuition laws for undocumented students in other states.

Currently, over 20 states offer some form of in-state tuition benefit to undocumented youth based on residency or high school graduation criteria.

Impact on students

The lawsuit, if successful, could drastically increase the financial burden on undocumented students seeking a college education in Kentucky. In-state tuition is often more than 50% cheaper than the rates charged to out-of-state students. For undocumented students, who already face limited access to federal financial aid and scholarships, this change could significantly reduce college enrollment and completion rates.For many of these students, Kentucky is the only home they’ve known. Having attended and graduated from local schools, they often meet all the typical residency requirements—except legal immigration status. Losing in-state tuition would mean confronting a financial reality many cannot afford.

Residency vs. reality

Although Kentucky Governor Andy Beshear has been named in the lawsuit, the tuition regulation being challenged was created over a decade ago by the state’s Council on Postsecondary Education (CPE), an independent body responsible for setting tuition residency rules.

The governor’s office has clarified that it has no authority over these regulations. Meanwhile, the CPE is currently reviewing the legal challenge but has not provided a detailed response.Attempts to change the policy through the state legislature have previously failed, even with a Republican majority, indicating limited consensus on how to approach the issue.For students, however, the consequences are far more immediate and personal.

The policy under threat has made college attainable for undocumented students who completed their schooling in Kentucky, treating them as residents for tuition purposes. Losing this status would mean a steep rise in college costs—often tens of thousands more each year—making higher education unaffordable for many.

This lawsuit doesn’t just test the boundaries of state versus federal authority; it puts the academic futures of young people at risk. Many undocumented students, brought to the U.S. as children, consider Kentucky their home. For them, this case could determine whether they can pursue a degree or face yet another barrier rooted not in merit, but in immigration status. As the legal process unfolds, the broader question remains: should a student’s ability to afford college hinge on where they were born?