A federal judge has blocked Illinois from enforcing laws that allow undocumented immigrants to receive in-state college tuition and other financial aid benefits. Judge David W. Dugan ruled Illinois’ RISE Act and DREAM Act policies “unconstitutional and invalid” as applied to undocumented students. The ruling affects both educational benefit programs and creates potential precedent for similar lawsuits pending against other states.
What changed
Judge David W. Dugan ruled Illinois’ RISE Act and DREAM Act policies “unconstitutional and invalid” as applied to undocumented students, determining that the policies violate federal law by providing residency-based college benefits to undocumented students while not extending the same benefits to all U.S. citizens who live outside the state.
The Illinois DREAM Act and RISE Act allow some undocumented students to qualify if they meet specific requirements, including graduating from an Illinois high school, attending an Illinois school for at least three years and pledging to apply to become a permanent U.S. resident once eligible.
The order, however, is on hold for 14 days while the state decides whether to appeal the case. The ruling stems from a lawsuit brought by the U.S. Department of Justice’s Civil Division and U.S. Attorney’s Office in the Southern District of Illinois in September 2025.
Why it matters
This ruling signals a significant shift in how federal courts view state-funded educational benefits for undocumented immigrants. The ruling marks another victory for the U.S. Department of Justice, which has sued more than a dozen states over policies that provide in-state tuition rates and other educational benefits to undocumented students, with similar policies being struck down across four other states: Texas, Kentucky, Oklahoma and Nebraska.
Illinois is the first to have its policy ruled unconstitutional after state officials mounted a legal defense against the Trump administration. This distinction matters: in other states, officials joined DOJ in seeking to vacate the policies, but Illinois contested the claim.
For practitioners advising clients with undocumented family members of college age, this blocks a previously viable pathway to reduce educational costs. Illinois’ tuition law — which was enacted in 2003 and later modified — provides undocumented students with in-state rates if they meet certain requirements. That benefit is now enjoined pending appeal.
Way forward
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Verify state law. If you represent a client in Illinois with college-bound family members, confirm whether the 14-day appeal window has closed and whether Illinois has filed notice of appeal. Until the stay expires, existing tuition benefits may remain in place.
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Evaluate other states. If your client can relocate to a state with pending litigation (such as Minnesota, California, or Virginia), research whether those jurisdictions offer better outcomes. In March, U.S. District Judge Katherine Menendez dismissed DOJ’s case against Minnesota’s laws providing in-state tuition to certain undocumented students.
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Plan for appeals. Monitor Illinois Attorney General’s office announcements regarding appeal strategy. A reversal on appeal would restore benefits; an affirmance would close the door statewide.
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Consult immigration counsel. The ruling does not affect lawful permanent residents or DACA beneficiaries with work authorization—only those without any immigration status. Confirm your client’s exact status before assuming this ruling applies.
Disclaimer
This article is for informational purposes only and does not constitute legal advice. Fola is a technology platform, not a law firm. Immigration law is complex and fact-specific; please consult a licensed immigration attorney to evaluate how this ruling affects your situation. Verify all information against the original court decision and the primary sources linked above, as policy and court precedent can change without notice.