Bid to Revive Texas Dream Act Rejected by Fifth Circuit Court

July 10th, 2026 11:36 AM

Texas’s agreement to stop providing preferential in-state tuition costs to illegal aliens was upheld by the Fifth Circuit Court of Appeals on Thursday, thwarting the legal bid by leftist organizations to restore the benefit to students who are unlawfully in the state.

In 2001, the Texas Dream Act became law, enabling illegal aliens to obtain in-state tuition discounts at public universities. Last year, however, the U.S. Justice Department sued Texas on the grounds that the Texas Dream Act violated federal law prohibiting illegal aliens from being provided benefits that are not available to all U.S. citizens.

Since federal law preempts state law, Texas officials immediately consented, agreeing to no longer provide the benefit to illegal aliens, prompting a lawsuit by groups seeking to invalidate the court-approved consent agreement. When that effort was rejected by a district appeals court, they appealed to the Fifth Circuit.

On Thursday, the Fifth Circuit upheld the consent agreement:

“The district court correctly denied intervention after concluding that they could not plausibly defend the preemption claim.”

….

“We AFFIRM the denial of the motions to intervene and dismiss the remaining claims for want of appellate jurisdiction.”

As a result, illegal aliens can no longer obtain in-state tuition rates that are far lower than those charged legal U.S. residents who don’t reside in Texas.

Under the Texas Dream Act, illegal aliens had been able to qualify for in-state tuition if they resided in Texas for at least three years, graduated from a Texas high school, and promised to pursue lawful status.

“Texas and the Trump DOJ just secured another major victory for the rule of law.” Texas Governor Greg Abbott declared Thursday, responding to the decision.

La Union del Pueblo Entero, Students for Affordable Tuition, Austin Community College, and Oscar Silva were the appellants seeking to invalidate the consent agreement between Texas and the Justice Department.