A federal appeals court upheld an agreement between the Trump administration and Texas’s attorney general to end in-state tuition eligibility for undocumented students at public institutions. The Texas Dream Act had allowed undocumented students to pay in-state rates if they met conditions including Texas high school graduation, residency history, and an affidavit committing to seek permanent residency. The U.S. Justice Department challenged the program, citing a federal statute limiting higher-ed benefits tied to residency that are not available to out-of-state U.S. citizens. An injunction issued by Judge Reed O’Connor was affirmed by the Fifth Circuit in a 2-to-1 opinion. The majority held that federal law preempts the challenged provisions, while dissenting Judge Irma Carrillo Ramirez disagreed. For institutions in Texas and system leaders nationwide, the ruling creates immediate pricing and enrollment-management pressure, particularly for community colleges and access initiatives that depend on in-state tuition policy stability.