Federal courts continue to narrow state options on in-state tuition and aid for undocumented students. A federal judge permanently blocked Illinois laws that allowed eligible undocumented students to pay in-state tuition and access state scholarships and aid, ruling the policies unconstitutional because they conflict with federal law. Earlier, the Department of Justice pursued similar efforts elsewhere, and Illinois is the first case where state officials mounted a defense and lost. The ruling enjoined the state from enforcing its in-state tuition, DREAM-act-related programs, and RISE Act provisions. The outcome signals that states may face higher legal exposure when residency-based education benefits treat undocumented students differently than citizens—forcing colleges to adjust admissions and aid workflows that rely on state policy. For students and institutions, the immediate risk is confusion over eligibility and rapid changes to tuition calculations and scholarship packaging during enrollment periods.