The Justice Department filed suit against California seeking to block state laws that allow certain undocumented residents to pay in‑state tuition and receive state scholarships, arguing the policies grant benefits not available to all U.S. citizens. The filings name Gov. Gavin Newsom and the governing boards of the state’s three public higher‑education systems and request a federal court ruling that the statutes are unconstitutional. California officials and higher‑ed leaders defended AB 540 and later expansions as essential to campus access for roughly 103,000 undocumented students in the state. The suit raises immediate questions for campuses about eligibility, scholarship distribution and long‑term budget exposure if courts curtail the policy. Advocates warn a ruling against California could prompt legal challenges in other states with similar laws.