The U.S. Department of Justice has filed a lawsuit against the State of Maryland, challenging the state’s policy that allows certain undocumented immigrants to qualify for in-state tuition rates and state-funded financial aid at public colleges and universities. The lawsuit names the State of Maryland, the Maryland Higher Education Commission (MHEC), and the University System of Maryland Board of Regents as defendants.
The legal challenge centers on Maryland’s DREAM Act, a law approved by voters in 2012 that permits qualifying undocumented students who attended Maryland schools and meet specific residency and tax-related requirements to pay the same tuition rates as Maryland residents at public institutions.
According to the Department of Justice, the law conflicts with federal immigration law by providing residency-based educational benefits to undocumented immigrants that are not available to U.S. citizens who live outside Maryland. Federal officials argue the policy unlawfully gives preferential treatment to undocumented immigrants while placing American citizens from other states at a disadvantage.
Associate Attorney General Stanley Woodward said the lawsuit seeks to ensure that “illegal aliens will not obtain taxpayer benefits or preferential treatment over our own citizens.” The DOJ also contends that Maryland taxpayers subsidized approximately $9 million in reduced tuition costs for undocumented students during the 2024-2025 academic year.
A report from the Maryland Higher Education Commission found that nearly 500 undocumented students attended Maryland community colleges and another 309 enrolled at public four-year universities between the summer of 2024 and spring of 2025. The DOJ lawsuit also challenges the eligibility of these students for several state-funded scholarship and financial aid programs, including the Guaranteed Access Grant, Senatorial Scholarship, Delegate Scholarship, and Cybersecurity Public Service Scholarship.
The Justice Department is asking the court to prohibit Maryland from continuing to offer in-state tuition rates, state financial aid, and scholarships to undocumented immigrants under the current law. The case marks the 13th lawsuit the department has filed challenging similar tuition policies nationwide. According to the DOJ, previous lawsuits in Texas, Kentucky, Oklahoma, and Nebraska resulted in court orders or agreements ending comparable programs, while challenges in several other states remain pending.
Maryland leaders have defended the state’s policy. House Speaker Joseline Peña-Melnyk said the General Assembly enacted the law because students who have grown up in Maryland communities, attended its public schools, and met state requirements deserve the opportunity to pursue higher education and contribute to the state’s economy. She described the lawsuit as another attempt by the federal government to override policy decisions made through Maryland’s democratic process and said the state intends to defend its law.
The lawsuit comes just weeks after the Department of Justice filed a separate legal challenge against Maryland’s Community Trust Act, continuing a broader effort by the federal government to contest several of the state’s immigration-related policies.
