A federal judge has tossed out the Justice Department's lawsuit over Minnesota's college tuition policy for students without legal immigration status, a ruling that keeps in-state tuition and state scholarships intact for now. The decision means lower rates at public colleges and universities stay in place for students who meet Minnesota's rules, lifting a major legal cloud just as families are locking in plans for the upcoming academic year.
According to The Associated Press, U.S. District Judge Katherine M. Menendez found that the federal government did not prove Minnesota's programs discriminate against U.S. citizens and concluded the Justice Department misread the federal statute at issue. The AP reports the lawsuit named Gov. Tim Walz, Attorney General Keith Ellison and the Minnesota Office of Higher Education as defendants. Ellison hailed the ruling in a written statement, saying, "Today, we defeated another one of Donald Trump's efforts to misconstrue federal law to force Minnesota to abandon duly passed state laws and become a colder, less caring state."
Court records show the Justice Department filed its complaint on June 25, 2025, targeting the state statutes that support Minnesota's in-state tuition rates and the North Star Promise scholarship, according to Civil Rights Litigation Clearinghouse. The docket reflects that Judge Menendez signed an order granting the defendants' motion to dismiss on March 27, 2026.
How Minnesota's rule works
Minnesota law allows students who attended a Minnesota high school for at least three years to qualify for in-state tuition and for state scholarships offered through the MN Dream Act and the North Star Promise program. The Minnesota Office of Higher Education lays out the residency rules, eligibility standards and application steps for state aid on its website. Those details are available at the Minnesota Office of Higher Education.
Part of a national legal push
The Minnesota case is one piece of a broader federal offensive. The Justice Department has brought similar challenges this month to in-state tuition policies in other states, including Kentucky and Texas, and a federal judge recently blocked Texas's law, highlighting how the fight stretches far beyond the Upper Midwest, according to The Associated Press. Advocates and researchers estimate that roughly two dozen states plus the District of Columbia already have laws or policies that extend in-state rates or state financial aid to at least some undocumented students.
Legal takeaways
At the centre of the dispute is 8 U.S.C. §1623, a federal law that bars states from granting postsecondary education benefits "on the basis of residence" to people who are not lawfully present unless the same benefit is available to all U.S. citizens. The statute can be viewed at Justia. Judge Menendez concluded that the Justice Department read the law too broadly and that the federal government lacked standing to sue the governor and attorney general, findings reflected in the court's order and docket entries.
For now, students who satisfy Minnesota's three-year high school attendance rule keep their in-state tuition status and can continue applying for state scholarships while the larger legal battle unfolds. The ruling offers immediate clarity for colleges, advisers and thousands of students trying to make decisions for the next term.
