The U.S. Department of Justice sued Maryland over laws that allow certain undocumented students to receive in-state tuition benefits. The lawsuit—filed Thursday—argues the policy unconstitutionally discriminates against out-of-state U.S. citizens and violates federal law. DOJ Associate Attorney General Stanley Woodward said the state saved about $9 million on tuition for undocumented students during one academic year, framing the change as an improper taxpayer subsidy. Maryland lawmakers and higher-ed stakeholders that support access programs are expected to treat the case as part of a broader multi-state fight over Dream Act tuition eligibility. This is at least the 13th DOJ lawsuit targeting similar state policies, with some states previously targeted choosing to align with federal arguments. Outcomes in related cases could determine whether colleges must update residency rules, scholarship eligibility, and financial aid compliance processes. For institutions, tuition classification disputes can quickly cascade into enrollment planning, revenue forecasting, and legal risk management for student records and billing.
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