In the wake of a federal judge’s decision to overturn the Texas Dream Act, which previously guaranteed in-state tuition for undocumented students, student-led organizations across the state have rapidly mobilized, raising significant funds to support affected students. This development comes amid trending news highlighting the precarious financial future many “Dreamers” now face, with tuition costs potentially tripling, underscoring the immediate impact of the Texas Dream Act repeal.
The Legal Storm: Overturning the Texas Dream Act
On June 4, 2025, a federal judge in the Northern District of Texas issued an order that immediately halted the Texas Dream Act, a landmark law enacted in 2001. This legal maneuver stemmed from a lawsuit filed by the U.S. Department of Justice (DOJ), which argued that the state law violated the federal Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA). The IIRIRA prohibits higher education institutions from offering benefits to undocumented individuals that are not available to U.S. citizens. In a swift and controversial move, Texas Attorney General Ken Paxton and Governor Greg Abbott did not contest the federal government’s claims, instead agreeing to a “consent judgment” that led to the law’s immediate injunction, effectively ending the Texas Dream Act for now.
The Texas Dream Act, originally passed with bipartisan support, had allowed eligible undocumented students who graduated from a Texas high school and resided in the state for at least three years to qualify for in-state tuition Texas rates and state financial aid. This policy had been instrumental in making higher education access attainable for approximately 57,000 undocumented students currently enrolled in Texas higher education institutions, as well as the nearly 200,000 younger students on track to graduate.
Despite repeated legislative attempts to repeal it in past years, the Texas Dream Act had remained in place until this federal intervention. Advocates argue that the claim of discrimination against U.S. citizens is misleading, as out-of-state U.S. citizens also pay higher tuition rates than Texas residents, and the Texas Dream Act required the same residency and graduation criteria for all eligible students.
Immediate Ramifications for Students and the State
The abrupt end to the Texas Dream Act has created significant financial burdens for undocumented students. Many now face out-of-state tuition rates, which can be three to four times higher than in-state costs – potentially an additional $15,000 or more per academic year. Beyond tuition, these students have also lost access to state financial aid programs like the Texas Application for State Financial Aid (TASFA), exacerbating the Dreamers tuition crisis.
Experts and advocates warn that this ruling could lead to increased dropout rates, longer degree completion times, and a significant number of students being forced to leave Texas to pursue their education elsewhere. The economic consequences for the state are also substantial, with estimates suggesting a potential annual loss of over $461 million due to decreased wage earnings and reduced spending power. Furthermore, the ruling has raised privacy concerns as universities are being asked to identify undocumented students, a process for which clear guidelines have been lacking.
While the ruling specifically targets students “not lawfully present,” it has created confusion regarding eligibility for DACA recipients and other “lawfully present” immigrant student support, as institutions grapple with identification processes. This adds another layer to the challenges posed by the Texas Dream Act repeal.
Student-Led Initiatives Emerge Amidst Crisis
In response to the immediate financial crisis faced by their peers, Texas student organizations have stepped up to provide crucial support. Two prominent student-led initiatives have raised substantial sums to help undocumented students bridge the gap in tuition and living expenses, demonstrating the power of student fundraising Texas.
Rooted, a coalition of immigrant Texas students and alumni, launched a fundraising campaign in August and has since raised over $12,000. This fund has assisted students not only with tuition but also with essential living costs such as rent and groceries. Victoria, a co-lead for Rooted, emphasized the critical need for such support, noting that every donation is meaningful in helping students overcome daily challenges related to the loss of undocumented student tuition benefits.
Similarly, Texas Students for DEI (TXS4DEI), a group that originated at UT and has expanded statewide, partnered with Students Engaged in Advancing Texas (SEAT) to establish the “Keeping the Texas Dream” mutual aid fund. This initiative has garnered over $19,000, prioritizing students from community colleges and other institutions that may lack similar support networks. Organizers aim to reduce the financial burden to approximate in-state tuition Texas levels, acknowledging that many students had already enrolled in summer and fall classes under the assumption that the Texas Dream Act would remain in effect.
Despite these dedicated efforts, the demand for assistance has been overwhelming. The “Keeping the Texas Dream” fund had to close applications on August 11th after the volume of requests exceeded the available resources, underscoring the vast need among undocumented students facing the Dreamers tuition crisis.
Ongoing Legal Battles and the Fight for Access
The struggle to restore in-state tuition Texas access for undocumented students continues beyond these fundraising efforts. Advocacy groups, including the National Immigration Law Center (NILC), ACLU of Texas, Texas Civil Rights Project, and La Unión del Pueblo Entero (LUPE), attempted to intervene in the federal lawsuit to defend the Texas Dream Act. However, U.S. District Judge Reed O’Connor denied their motions on August 15, 2025, citing that the case had already been settled and their arguments were legally “futile.” These groups have since appealed this decision to the 5th U.S. Circuit Court of Appeals, signaling a prolonged legal battle against the Texas Dream Act repeal.
Advocates express deep concern that the swift invalidation of the Texas Dream Act, coupled with the state’s non-resistance, sets a dangerous precedent that could inspire similar actions in other states, jeopardizing higher education access nationwide. The news from Texas underscores the complex challenges faced by undocumented students seeking higher education and the critical role of community and student activism in the face of policy shifts. This top concern for many students highlights an ongoing debate about inclusivity and economic opportunity within the state and the future of Texas education policy.
