The Department of Justice escalated its legal campaign against state policies that provide in-state tuition and scholarships to certain undocumented students. The DOJ appealed a federal judge’s March decision favoring Minnesota, pushing the case to the Eighth Circuit Court of Appeals. The dispute centers on whether Minnesota’s in-state tuition and North Star Promise Scholarship eligibility violate federal law barring states from offering education benefits to undocumented students based on in-state residency when those benefits are not available to all U.S. citizens. Minnesota officials argue the policies apply under criteria that don’t hinge on citizenship and that federal immigration law does not preempt state tuition access. For public university systems, the litigation is a direct enrollment and revenue risk: outcomes could reshape tuition modeling, scholarship administration, and compliance planning well before any legislative fixes are adopted. The DOJ also filed a separate lawsuit against New Jersey earlier, signaling continued federal pressure across multiple states.