DOJ sues California over massive discounts and scholarships for illegal aliens
The Department of Justice has sued Democrat Governor Gavin Newsom’s state for allowing illegal aliens to obtain major discounts on tuition that is unavailable for lawful state residents
by Summer Lane | November 21, 2025
President Donald Trump’s Department of Justice has sued the state of California over what it alleges are unfair tuition breaks and loans for noncitizen students, thereby discriminating against American citizens who do not have the same access to these benefits.
“California is illegally discriminating against American students and families by offering exclusive tuition benefits for non-citizens,” said Attorney General Pamela Bondi in a statement.
She added, “This marks our third lawsuit against California in one week — we will continue bringing litigation against California until the state ceases its flagrant disregard for federal law.”
The standing laws in California, according to the DOJ, provide in-state tuition, scholarships, and subsidized loans for illegal aliens, but do not afford these same reduced tuition rates or educational opportunities for U.S. citizens.
The lawsuit is also a direct response to two previous executive orders signed by President Donald Trump, directing federal agencies to make sure that illegal aliens do not receive taxpayer benefits or “preferential treatment.”
In its complaint, the DOJ argued, “Federal law prohibits aliens illegally present in the United States from receiving in-state tuition benefits that are denied to out-of-state U.S. citizens…There are no exceptions. Yet California Education Code…extends eligibility for in-state tuition benefits at state postsecondary educational institutions, including resident tuition, scholarships, and subsidized loans, to illegal aliens, while requiring U.S. citizens from other states to pay higher tuition rates.”
In the filing, the DOJ is also seeking to obtain a court order that would halt the “Dream Acts” which essentially enables illegal aliens to apply for and participate in student aid programs, including non-state-funded scholarships, in some cases.
The DOJ repeatedly pointed out in its complaint that these tuition and scholarship options have been made available to only illegal aliens, while actively excluding American-born students.
According to the Courthouse News Service, this lawsuit is one of several veins of litigation between the Trump administration and the state of California, which includes a lawsuit over allowing transgender students to compete in school sports, as well as a recent lawsuit challenging California’s redistricting efforts.
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