Denying In-State Tuition to Undocumented Students Hurts All Texans

WASHINGTON DC, June 6, 2025— On June 4, the Department of Justice and the Texas attorney general filed suits seeking to strike down a Texas law that guarantees in-state tuition to students who are undocumented. A federal judge in Texas subsequently signed an order revoking the law, known as the Texas Dream Act. Without the Dream Act, students who are undocumented now face significantly higher educational costs. This limits their access to higher education and affects their future opportunities, which will impact economic growth and prosperity for all Texans. 

“Expanding access to higher education isn’t just good policy—it’s a smart investment in Texas’s future. Blocking talented students from earning affordable college degrees doesn’t just derail individual dreams—it drains potential from our workforce and sidelines economic opportunity. These students grew up here. They’re ready to contribute. Texas should be opening doors to the best and brightest, not turning its back on them,” said Chelsie Kramer, Texas state organizer for the American Immigration Council.

For over twenty years, the Texas Dream Act guaranteed that eligible undocumented students could access higher education. Similar legislation passed in 24 other states and the District of Columbia has widely imitated the law.

“With the repeal of the Dream Act, Texas businesses now face an unnecessary new barrier to accessing the educated workforce they need to grow and thrive. Here in San Antonio, Dreamers are more than just neighbors or colleagues, they are essential to who we are as a city. This setback will make college less accessible, resulting in fewer graduates, less innovation, and slower economic progress. It’s not just students who will suffer, it’s our entire economy,” said Luis A. Rodriguez, President and CEO of the San Antonio Hispanic Chamber of Commerce. “We shouldn’t be punishing young Texans who’ve grown up here and are ready to contribute to our state’s future.”

People who are undocumented in Texas contribute significantly to keeping the public education system afloat. In FY 2023, undocumented immigrants paid $59.8 billion in state and federal taxes. Since 2001, undocumented students using the Texas Dream Act have generated an additional $28.5 billion in economic activity. With the Texas attorney general choosing not to defend the Texas Dream Act, Texas now stands to lose $461.3 million in wage earnings and additional spending power annually. 

“Eliminating in-state tuition for undocumented students is more than a policy reversal—it’s an economic misstep. These students are part of Texas’ future workforce, contributing over $80 million annually to our higher education system and poised to fill critical roles in key sectors like healthcare, education, and technology. Removing their access to affordable education will reduce college enrollment, shrink our talent pool, and weaken our state’s long-term competitiveness. Texas has always been a place that invests in human potential. Turning our backs on these students is not just morally questionable, it’s economically irresponsible,” said J.R. Gonzales, Texas Association of Mexican American Chambers of Commerce (TAMACC)

84 organizations have signed a letter urging the Texas attorney general to reverse course and defend the Texas Dream Act—a bipartisan policy that has strengthened Texas’ workforce and economy for over two decades. The letter calls on the Attorney General to uphold Texas’ values and protect the state’s right to set its own higher education policies.