The Texas Dream Act HB 1403—a 24-year-old law providing in-state tuition to eligible undocumented residents—is currently at the center of an intense legal battle.
The “Collusive” Lawsuit and Invalidation
On June 4, 2025, the U.S. Department of Justice filed a federal lawsuit claiming HB 1403 violated federal law.
- Rapid Surrender: Within hours, Texas Attorney General Ken Paxton entered into a “consent judgment” with the federal government, agreeing the law was unconstitutional.
- Judicial Ruling: A federal judge in the Northern District of Texas immediately issued a permanent injunction, halting the law without holding a hearing.
- Immediate Financial Impact: Many students saw their tuition costs skyrocket; for example, at the University of Texas, some students reported costs jumping from roughly $6,000 to over $22,000 per semester.
Active Legal Challenges by Advocacy Groups
Because the state refused to defend its own law, civil rights and advocacy groups are fighting to “intervene” so they can appeal the ruling themselves.
- The Appeal to the Fifth Circuit: After a district court denied their request to intervene, the Mexican American Legal Defense and Educational Fund (MALDEF) filed a notice of appeal with the U.S. Court of Appeals for the Fifth Circuit in September 2025.
- Key Intervenors: Organizations seeking to restore the act include:
- La Unión del Pueblo Entero (LUPE)
- Austin Community College District
- Students for Affordable Tuition (SAT)
- Texas Civil Rights Project and Democracy Forward
- Core Legal Arguments: Proponents argue the settlement was a “backhanded attempt” to bypass the Texas Legislature, which had recently declined to repeal the law during its 2025 session.
Current Case Status (February 2026)
As of early February 2026, the case United States v. Texas (No. 25-10898) remains pending before the Fifth Circuit.
- Amicus Support: A broad coalition, including the Texas AFL-CIO and the Presidents’ Alliance on Higher Education and Immigration, has filed briefs in support of the students, highlighting the economic damage of losing thousands of educated workers.
- Opposing Views: Groups like FAIR (Federation for American Immigration Reform) have filed briefs supporting the invalidation, arguing that federal law (IIRIRA 1996) preempts states from offering residency-based benefits to undocumented individuals that are not available to all U.S. citizens.
Advocates and students continue to monitor the Texas Dream Act HB 1403 case, which could determine the future of in-state tuition for eligible undocumented residents in Texas.
