Justice Department Sues New Jersey Over Undocumented Student Aid

The Justice Department filed a civil complaint in the U.S. District Court for the District of New Jersey on April 30, 2026, targeting state laws that extend in-state tuition and financial aid to undocumented immigrants, alleging violations of federal immigration statutes including 8 U.S.C. § 1623, per the department's press release.

The laws affect undocumented students attending New Jersey's public colleges and universities, where in-state tuition rates save eligible residents thousands of dollars per year compared to out-of-state fees. New Jersey's program, enacted in 2018, has provided access to higher education for an estimated 5,000 to 10,000 students without legal status, based on state enrollment data from the New Jersey Office of the Secretary of Higher Education.

Financial aid components include need-based grants through programs like the Tuition Aid Grant, which distributed $450 million statewide in the 2024-2025 academic year, with a portion allocated to qualifying undocumented applicants.

Before these laws, undocumented students in New Jersey paid out-of-state tuition rates, often double the in-state cost, and lacked eligibility for state-funded aid. The complaint, if successful, would revert eligibility to federal standards that prohibit such benefits for those without lawful presence, effective upon a court ruling.

No specific implementation date appears in the filing, but enforcement would follow judicial resolution, potentially disrupting aid for the upcoming academic year.

A favorable ruling for the Justice Department would require New Jersey to amend its statutes, prompting state universities to recalculate tuition for affected students and redistribute financial aid funds. The case activates federal court timelines, with initial hearings possible within 60 days and a potential appeal to the Third Circuit, per standard civil procedure rules.

State agencies, including the New Jersey Higher Education Student Assistance Authority, would need to notify recipients and adjust budgets, while the outcome could influence similar policies in 20 other states with comparable in-state tuition laws for undocumented students.

The complaint follows a 2025 executive order directing federal agencies to enforce immigration benefit restrictions, building on prior challenges to state sanctuary policies. New Jersey's laws originated from 2018 legislation signed by then-Governor Phil Murphy, expanding access after federal DACA protections faced legal threats.