A significant shift in higher education policy has created an immediate financial challenge for thousands of undocumented students in Texas. Following a federal judge’s decision on June 4, 2025, to invalidate the state’s 24-year-old Texas Dream Act—a law that previously granted them access to in-state tuition rates—student-led organizations have rapidly mobilized. These groups have launched substantial fundraising efforts to help bridge the widening cost gap, making this development a major current news item in Texas and sparking significant buzz across campuses and communities. The future of the Texas Dream Act hangs in the balance, creating an unprecedented higher education crisis.
The Texas Dream Act: A Quarter-Century of In-State Tuition
For over two decades, the Texas Dream Act, originally enacted as House Bill 1403 in 2001 and later amended, stood as a landmark policy. It allowed undocumented students who met specific residency and educational requirements—such as graduating from a Texas high school and residing in the state for at least three years—to pay the same tuition rates as resident Texans. This legislation, which received bipartisan support, was instrumental in making higher education attainable for many who would otherwise face prohibitive out-of-state tuition costs, often three to four times higher. Texas was the first state in the nation to implement such a policy, and it was seen as a critical pathway for students to contribute to the state’s economy and workforce. The impact of the Texas Dream Act on in-state tuition Texas was profound.
Federal Challenge and Swift Overturning
The policy’s long tenure came to an abrupt end when the U.S. Department of Justice (DOJ) filed a lawsuit challenging the law’s legality. The DOJ argued that the Texas Dream Act violated a federal statute, specifically 8 U.S.C. § 1623, by providing benefits to undocumented students that were not offered to U.S. citizens in other states. In a swift legal maneuver, Texas Attorney General Ken Paxton did not defend the state’s law; instead, he filed a joint motion with the DOJ, agreeing to the federal government’s position. Within hours of the DOJ’s filing, U.S. District Judge Reed O’Connor issued an order permanently blocking the Texas Dream Act, declaring it unconstitutional. This ruling came just days after the Texas legislature concluded its 2025 session without taking legislative action to repeal the act.
Immediate Financial Fallout for Students
The immediate consequence of the ruling is a drastic increase in tuition costs for an estimated 57,000 undocumented students currently enrolled in Texas higher education institutions, as well as nearly 197,000 younger students on track to graduate. These students, many of whom have lived in Texas their entire lives and graduated from its high schools, now face the non-resident tuition rate, which can be tens of thousands of dollars more per academic year. For instance, at the University of Texas at Austin, the difference between in-state and out-of-state tuition can be over $30,000 annually. Beyond tuition, undocumented students have also lost access to state financial aid programs like the Texas Application for State Financial Aid (TASFA). This situation presents a significant challenge for undocumented students Texas.
Student-Led Initiatives Step In
In response to this crisis, student-led organizations across Texas have quickly organized to provide crucial financial support. Two prominent initiatives have emerged: Rooted, a coalition of immigrant UT students and alumni, and “Keeping the Texas Dream,” a joint effort by Texas Students for DEI (Diversity, Equity, and Inclusion) and Students Engaged in Advancing Texas (SEAT). These efforts are a form of student fundraising Texas.
Rooted launched a fundraising campaign in August that has raised over $12,000, assisting students with tuition, rent, and other essential living expenses. Meanwhile, Texas Students for DEI and SEAT have collectively raised over $19,000 through their “Keeping the Texas Dream” fund. Their goal is to help students cover the difference between in-state and out-of-state tuition, bringing costs closer to what they were previously. However, the demand has been overwhelming; applications for the “Keeping the Texas Dream” fund had to be closed on August 11 due to the volume of applications exceeding the funds raised. Combined, these efforts have raised over $30,000 to alleviate the immediate financial burden, reflecting a strong commitment to ensuring these students can continue their education. This includes support for DACA students Texas who are facing similar tuition hikes.
Broader Implications and Future Uncertainty
The overturning of the Texas Dream Act has far-reaching implications beyond individual students. Advocacy groups, including the ACLU and the Texas Civil Rights Project, have filed legal challenges, arguing that the repeal without a transition period violates due process. Economically, experts warn that removing these students from the higher education pipeline could exacerbate workforce shortages and negatively impact Texas’ economy. Furthermore, some DACA recipients, who are lawfully present under federal law, have reported being incorrectly charged out-of-state tuition, indicating confusion and inconsistent application of the ruling. The debate around Texas universities funding is also intensifying due to this ruling.
As Texas navigates this new reality, the student-led fundraising initiatives represent a critical lifeline. They underscore the ongoing challenges faced by undocumented students in Texas and highlight the community’s dedication to supporting their educational aspirations amid shifting legal landscapes. The struggle for equitable access to higher education, particularly concerning in-state tuition Texas, continues.
