Federal and state litigation intensified this week as the Justice Department sued California over in-state tuition benefits for undocumented students while parents and taxpayers in Tennessee filed suit to block a $150 million private-school voucher program. The DOJ argues California’s in-state tuition laws confer unlawful benefits; Tennessee plaintiffs contend the voucher scheme violates state constitutional duties to public education. Both actions signal an escalation in federal scrutiny of state-level education funding and access policies. University systems and state higher-education leaders that have implemented AB 540-like waivers or expanded voucher-eligibility should assess legal exposure, contingency financial models and student communications protocols. Immediate actions for campus leaders: brief governing boards on potential funding and enrollment impacts, update counsel on compliance and scholarship rules, and prepare rapid-response stakeholder messaging for students and families.