The Texas Higher Education Coordinating Board (THECB) has put forth proposed rules that would significantly alter how state institutions determine in-state residency and tuition classification for students. This move follows a pivotal June court order that invalidated the Texas Dream Act, a long-standing law that had previously enabled certain non-citizen students, including those without legal status, to qualify for lower in-state tuition rates and financial aid. The board is currently accepting public testimony on these proposed regulations, which aim to establish new parameters for eligibility in the wake of the federal court’s decision. This development represents a critical juncture for higher education access in Texas, leaving many students and institutions grappling with uncertainty and potential challenges. This news has been closely watched by those invested in the state’s educational landscape.
The Court Ruling’s Ripple Effect on Texas Education
The landscape of higher education in Texas shifted dramatically in June when a federal judge declared the Texas Dream Act unconstitutional. This bipartisan law, enacted in 2001, had allowed undocumented students who met specific residency requirements—including graduating from a Texas high school and demonstrating intent to legalize their status—to pay in-state tuition. The lawsuit that led to its demise was filed by the U.S. Department of Justice, arguing that the Texas policy unlawfully offered benefits to undocumented immigrants that were not available to all U.S. citizens, thereby conflicting with federal law. In a swift turn of events, Texas’s Attorney General Ken Paxton not only supported the DOJ’s action but actively agreed to the motion to strike down the state’s own law. This abrupt end to the Texas Dream Act left tens of thousands of students facing dramatically increased tuition costs and significant uncertainty about their educational future. Many Texas universities found themselves scrambling to comply with the ruling, leading to widespread confusion among students regarding their tuition obligations.
THECB’s Proposed Path Forward: Defining Eligibility
In response to the court-ordered void left by the Dream Act’s invalidation, the THECB has proposed a new set of rules intended to formalize eligibility criteria for in-state tuition. These proposed regulations, which were put forth in August, stipulate that only students who are “lawfully present” in the United States will be eligible for tuition waivers or exemptions. The board’s stated goal is to consolidate existing rules related to tuition and fees with those determining resident status, thereby providing greater clarity. A key aspect of the proposal is its incorporation of federal law interpretations regarding lawful presence as a prerequisite for resident tuition. The proposed rules also outline procedures for institutions to manage errors in student classification and designate specific officials responsible for residency determinations. These changes are slated to become effective for residency status decisions made after the census date of the fall 2025 semester.
The “Lawful Presence” Conundrum and FERPA Fears
A significant point of contention within the proposed rules is the lack of a concrete definition for “lawful presence.” This ambiguity places the onus on individual institutions to seek guidance from their legal counsel, a situation that could lead to inconsistent interpretations and varied application across the state’s higher education system. Compounding this uncertainty is the provision allowing universities to verify student eligibility by confirming with U.S. Citizenship and Immigration Services (USCIS). Attorneys have raised serious concerns that such verification practices could potentially violate the Family Educational Rights and Privacy Act (FERPA), a federal law that safeguards sensitive student records and personally identifiable information. The prospect of student data being shared with federal agencies, coupled with the existing ambiguity, has fueled worries that eligible students may be deterred from applying for in-state tuition altogether due to privacy concerns and a potential “chilling effect”.
Impact on Students and Institutions: A Growing Challenge
The immediate financial consequences for students who previously qualified under the Texas Dream Act are substantial. Without in-state tuition, their educational costs can nearly double, with out-of-state rates often being about three times higher. This steep increase poses a significant barrier to higher education, potentially forcing students to reconsider their academic pursuits, switch schools, or even drop out entirely. For universities, navigating the unclear directives presents a complex operational challenge. Some institutions have already faced difficulties in implementing the ruling, leading to errors in tuition billing and miscommunication with students. Advocates emphasize that without clear guidance from the state, many students who are indeed eligible for in-state tuition may be wrongly denied it. The situation highlights a critical need for clear policy to ensure equitable access to education in Texas.
Public Input and the Quest for Clarity
The THECB has opened a period for public testimony, accepting comments on the proposed rules until Sunday, September 28, 2025. This comment period is crucial for students, families, and advocacy groups to voice their concerns and demand greater clarity. The Mexican American Legal Defense and Educational Fund (MALDEF) and other organizations are actively involved in legal challenges and public advocacy, striving to ensure that the voices of affected students are heard and that fairness prevails. The ongoing legal battles and the THECB’s proposed rulemaking underscore the complex and evolving nature of higher education policy in Texas, particularly concerning the intersection of immigration status, residency, and affordability. The ultimate outcome will shape educational opportunities for a significant segment of the state’s student population. This news analysis reflects the current state of affairs for Texas residents seeking higher education.
