Federal government sues Kentucky over college tuition rule that gives illegal immigrants in-state rates while denying same benefit to U S citizens

The question of who gets a break on college tuition is at the center of a new legal battle — and this time, it’s Kentucky in the hot seat.

The U.S. Department of Justice is taking the state to court over a rule that gives in-state tuition discounts to undocumented immigrants, arguing that this unfairly sidelines American citizens.

Feds Step In, Calling the Policy Unconstitutional

The DOJ filed the lawsuit in the Eastern District of Kentucky, claiming the regulation violates federal law and the U.S. Constitution.

At the heart of the argument is this: public colleges in Kentucky are giving financial breaks to individuals in the country illegally, while U.S. citizens from other states are stuck paying full price.

According to the federal government, this directly clashes with federal immigration law, which says that states can’t offer undocumented immigrants benefits — like in-state tuition — unless those same benefits are offered to all U.S. citizens, regardless of what state they’re from.

A Win in Texas Sets the Stage

This isn’t the first time the federal government has taken action like this.

The DOJ recently won a similar case in Texas, and that victory has emboldened them to take on Kentucky. U.S. Attorney General Pamela Bondi put it bluntly: “No state can be allowed to treat Americans like second-class citizens in their own country by offering financial benefits to illegal aliens.”

She emphasized that the department is ready to take this fight all the way, arguing it’s not just about money — it’s about fairness and the rule of law.

The Rule at the Center of the Dispute

So what exactly does Kentucky’s regulation say? The policy allows public colleges and universities to offer reduced in-state tuition to undocumented immigrants who qualify as Kentucky residents.

The DOJ argues this gives preferential treatment based on immigration status — something federal law expressly forbids unless all U.S. citizens get the same deal.

To the DOJ, that’s a direct violation of the Supremacy Clause of the U.S. Constitution — the idea that federal law outranks state law when the two clash.

Tied to Broader Trump-Era Executive Orders

This lawsuit isn’t happening in a vacuum.

It comes on the heels of two executive orders signed by President Trump, both aimed at making sure undocumented immigrants aren’t getting access to taxpayer-funded benefits or special treatment in government programs.

This legal action is being framed as part of a broader push to enforce those executive orders and ensure states aren’t making end-runs around federal immigration policy.