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President Donald Trump at the White House on Sept. 22, 2025. (Saul Loeb/AFP via Getty Images)

On Thursday, the Trump administration filed a lawsuit against California, challenging the state’s long-running policy that allows undocumented immigrant students to pay in-state tuition at public colleges. 

The California Nonresident Tuition Exemption, commonly known as AB 540, is a state law that exempts certain students from paying non-resident tuition at public colleges and universities. This law also allows eligible students to apply for and receive state financial aid at selected public and private colleges in California.

The policy has been particularly significant for immigrant families: many Latino youth in Southern California were brought to the U.S. at a young age, but attended and completed high school in the state.

To qualify for AB 540, students must meet both an attendance requirement, three years in a California high school or equivalent and a graduation or transfer requirement. These exemptions also allow eligible students to apply for state and institutional financial aid. 

In a statement released by the Department of Justice, Attorney General Pamela Bondi said, “California is illegally discriminating against American students and families by offering exclusive tuition benefits for non-citizens.”  The lawsuit also challenges certain aspects of the California Dream Act, which permits eligible undocumented students to apply for state financial aid. 

The federal complaint, filed in the Eastern District of California against the State of California, Governor Newsom, the State Attorney General, and the Regents of the University of California, the Board of Trustees of the California State University and the Board of Governors of the California Community Colleges, seeks to enjoin the State from enforcing the California laws and bring them into compliance with federal requirements.

This is the third lawsuit against California in a week, as the Trump administration continues to strong-arm the state through litigation, arguing that it is intended to address the state's "flagrant disregard for federal law."

As a state with a higher immigrant population, California has approximately 80,000 undocumented college students.. However, according to a report by the New American Economy, undocumented individuals account for less than 2% of all students across the country. Many of these students attend community colleges as a more affordable option to pursue higher education. 

Governor Gavin Newsom’s spokesperson, Izzy Gardon, said in response that the lawsuits are not only “meritless” but “politically motivated” ploys by the Trump administration. “Good luck, Trump.  We’ll see you in court.”

 

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