The Justice Department filed a civil lawsuit against Penn State on November 5, 2026, arguing the university's in-state tuition policy for undocumented students violates federal law. No tuition rates have changed. A lawsuit does not automatically alter what students pay. Penn State says it is reviewing the complaint.

The Justice Department has sued Penn State University, challenging the school's practice of extending in-state tuition rates to undocumented students who meet its residency requirements. The lawsuit, filed November 5, 2026, in federal court, is the DOJ's 27th action over in-state tuition policies for undocumented students since the current enforcement campaign began.1

What Penn State's policy says

Pennsylvania never passed a statewide law granting undocumented students access to resident tuition, unlike states such as California, Texas, and Illinois, which passed "Dream Acts" of their own. Penn State's policy came from the university itself. Under that policy, undocumented students (with or without DACA status) could qualify for in-state rates if they met the university's residency requirements, which reportedly include attending a Pennsylvania high school for at least four years and graduating or earning a GED.

At Penn State's University Park campus for 2026-27, in-state tuition and fees run roughly $21,198 per year. Out-of-state tuition and fees run roughly $44,894. The annual difference is more than $23,000; over four years that adds up to nearly $95,000.1

What the DOJ is arguing

The DOJ's complaint argues that Penn State's policy violates federal law by giving a financial benefit to students who are not U.S. citizens that it denies to U.S. citizens who happen to live outside Pennsylvania. Assistant Attorney General Brett Shumate stated publicly that Congress has barred institutions from granting tuition discounts to undocumented immigrants unless the same rates are available to all U.S. citizens.2

The legal theory rests on federal statutes dating to the 1990s that restrict states and public institutions from extending benefits to those unlawfully present in the country on terms more favorable than those offered to U.S. citizens generally. The DOJ is seeking a court order that would prohibit Penn State from enforcing its current policy and block future policies that give undocumented students preferential treatment over out-of-state citizens.1

Penn State's response has been brief: the university said it is "aware of the DOJ's civil complaint and is reviewing it."

How this fits the broader pattern

This is not an isolated case. The DOJ has now filed 27 lawsuits over in-state tuition policies for undocumented students. Earlier suits targeted all 24 states plus Washington, D.C. that had passed statewide Dream Act laws. The University of Delaware was also sued individually, the same approach used here against Penn State: targeting a university rather than a state legislature.

Texas and Oklahoma both reached agreements with the DOJ in 2025 to stop offering in-state tuition to undocumented students. The DOJ previously sued University of Kansas over its in-state tuition policy, and Florida went further in 2026 by banning undocumented students from enrolling at state colleges entirely. The Penn State suit signals the DOJ is now pursuing universities that created their own policies independently of any state law.

No rates have changed yet. A lawsuit is not a court order. Penn State is still reviewing the complaint. Until a court issues an injunction or Penn State changes its policy on its own, undocumented students who currently qualify for in-state rates at Penn State are not affected. Watch for updates from Penn State's Office of the Bursar.

What this means if you're undocumented or DACA

If you are currently enrolled at Penn State on in-state tuition as an undocumented or DACA student, the most important thing to know is that nothing changes today. Courts move slowly, and any injunction would likely be appealed. That said, it is worth talking to Penn State's financial aid office now to understand your options if the policy changes before you graduate.

For DACA students exploring college financial aid options, the broader takeaway is this: in-state tuition access, which many relied on as the primary way to make a four-year degree affordable, is under active legal pressure in multiple states. If you are choosing between schools, knowing how tuition varies by state and whether tuition reciprocity agreements might apply to you is worth checking before you commit.

If Penn State is on your list, the Penn State admissions guide covers what the application process looks like independent of this lawsuit.

Three things to watch

  1. Penn State's response. The university could fight the lawsuit, settle, or change its policy voluntarily. Watch for an official statement beyond the initial "reviewing it."
  2. A court ruling. If the DOJ gets a preliminary injunction, rates could change mid-enrollment. That would be unusual, but it is what happened to some students in Texas after that state's agreement with the DOJ.
  3. Other universities. Penn State is probably not the last institution-level target. If your school has a similar policy that isn't backed by a state law, it may face scrutiny next.

For now, if you are applying to Penn State, go through the admissions process as normal. If you have questions about your financial aid package, use Penn State's financial aid appeal process if anything changes after you enroll.

Footnotes

  1. Inside Higher Ed. (2026, November 9). DOJ Sues Penn State Over In-State Tuition for Noncitizens. Inside Higher Ed. https://www.insidehighered.com/news/government/courts/2026/11/09/doj-sues-penn-state-over-state-tuition-noncitizens ↩ ↩2 ↩3

  2. The Hill. (2026, November 9). Penn State sued by DOJ for in-state tuition access for DACA, undocumented. The Hill. https://thehill.com/homenews/education/6201779-doj-penn-state-undocumented-students/ ↩