A federal appeals court upheld an agreement ending Texas’s in-state tuition benefit for undocumented students, according to the report. The Fifth Circuit’s decision leaves the state unable to offer the Texas Dream Act’s in-state rate as litigation challenges continue through the federal system. The ruling directly affects Texas students planning transfer and enrollment decisions at public institutions, since the cost differential between in-state and out-of-state tuition can be decisive for persistence. Universities and colleges in Texas will likely need to recalibrate financial aid packaging assumptions and admissions outreach. The decision also underscores how federal residency statutes can override state higher-education eligibility schemes, tightening the compliance environment for undocumented-student benefits.