Justice Department Sues Penn State Over In-State Tuition for Undocumented Students

The US Justice Department has sued Pennsylvania State University over a policy that lets some undocumented students pay in-state tuition, arguing that it illegally favours them over US citizens from other states. The complaint was filed on Thursday 5 November in the US District Court for the Middle District of Pennsylvania, Bloomberg Law reported.

The department said the case brings its total to 27 lawsuits challenging in-state tuition for undocumented immigrants. It is also a shift in strategy: instead of suing a state over a state law, the government is targeting a single public university’s own policy, as it did with the University of Delaware in October, Higher Ed Dive reported.

What Is Penn State’s Tuition Policy?

Under Penn State’s rules, undocumented students, with or without Deferred Action for Childhood Arrivals (DACA) status, can qualify for in-state tuition if they meet the university’s residency requirements. These include attending an accredited Pennsylvania high school for at least four years and graduating from one, or earning a Pennsylvania GED certificate, according to the university’s guidance quoted in the complaint.

The difference in cost is large. For 2026–27, Penn State’s in-state tuition at its main University Park campus is $20,878 a year, less than half the $44,574 charged to out-of-state students, Higher Ed Dive reported. Pennsylvania itself does not offer in-state tuition to undocumented students at state level, which is why the state has not faced a similar lawsuit.

What Does the Justice Department Argue?

The department relies on a 1996 federal law, 8 U.S.C. § 1623(a), which bars people who are not lawfully present in the US from receiving post-secondary education benefits based on state residence unless the same benefits are available to all US citizens. “There are no exceptions,” the complaint says, adding that the policy is “blatant unequal treatment favoring illegal aliens over U.S. citizens”.

The government is asking the court to declare the policy unconstitutional under the Constitution’s Supremacy Clause, to permanently bar Penn State from enforcing it, and to block any similar policy in future. The department said six earlier lawsuits, in Texas, Kentucky, Oklahoma, Nebraska, Illinois and Kansas, have led to orders striking down similar tuition rules, including a ruling from the Fifth Circuit appeals court.

How Has Penn State Responded?

A Penn State spokesperson said the university is reviewing the complaint, according to Higher Ed Dive and Al Jazeera. The university has not said whether it will change the policy or fight the case in court.

The outcome may also be shaped by politics. The lawsuit was filed two days after Democrats won control of both chambers of Congress, but tuition rules are set by states and universities, and the cases will be decided in the courts. Higher Ed Dive noted that the department has had both wins and losses in its earlier suits.

What Does This Mean for Students?

For now, nothing changes immediately: the policy remains in place unless a court orders otherwise. Students affected by the case, and those comparing college costs more broadly, should keep an eye on official university notices and consider all funding options. Our guides to federal vs private student loans and the best student loan repayment plans explain the main choices for US borrowers.

Featured image: Old Main at Penn State University Park at night, by GChriss / Wikimedia Commons, CC BY 3.0. File photo.

Sources

• US Department of Justice — The Department of Justice files complaint against the Pennsylvania State University challenging its in-state tuition policy (5 November 2026).
• US Department of Justice — Complaint: United States v. The Pennsylvania State University (5 November 2026).
• Higher Ed Dive — DOJ sues Penn State over in-state tuition for undocumented students (6 November 2026).
• Bloomberg Law — Penn State latest DOJ target in immigrant tuition fight (6 November 2026).
• Al Jazeera — US Justice Department sues Penn State over undocumented students’ tuition (6 November 2026).