AUSTIN, Texas — A law that once made Texas a national leader in supporting undocumented students is no more. This month, the Texas Dream Act—a measure that for over two decades helped thousands of young immigrants afford college—was struck down in federal court. The decision affects not only students and families but also the future of Texas’s workforce and economy.
What Was the Texas Dream Act?
Passed in 2001, the Texas Dream Act (officially House Bill 1403) allowed undocumented students who grew up in Texas to pay the same lower tuition rates as other Texas residents at public colleges and universities. To qualify, students had to:
- Attend a Texas high school for at least three years
- Graduate from a Texas high school
- Sign a promise to apply for legal status as soon as they could
The law helped thousands of students, often called “Dreamers,” pursue careers in fields like nursing, teaching, and engineering.
What Changed in 2025?
In June 2025, a federal judge struck down the Texas Dream Act after a legal challenge. The U.S. Department of Justice and Texas Attorney General Ken Paxton argued that the law violated federal rules by offering benefits to undocumented immigrants that some U.S. citizens from other states couldn’t get.
Importantly, this wasn’t a decision made by Texas lawmakers—it happened through the courts. Some critics have called it a “back-door repeal”, because it ended a major policy without a public debate or a new law.
Who Is Affected?
The end of the Dream Act puts tens of thousands of students in a difficult position:
- Many will now have to pay out-of-state tuition, which can cost three times more than in-state rates.
- Some students may struggle to stay in school or graduate on time.
- Families across Texas could face serious financial strain.
Texas universities don’t track students’ immigration status, so it’s unclear how quickly schools will adjust or how the change will be enforced.
What Does It Mean for Texas?
Supporters of the Dream Act warn that ending it could hurt Texas in several ways:
- The state may lose millions of dollars in economic activity that comes from having more college graduates in the workforce.
- Businesses could face a shortage of skilled workers.
- Texas risks falling behind in innovation and job growth.
Immigrant families in Texas contribute billions in taxes each year, and many advocates argue that investing in their education benefits everyone.
What Happens Next?
Legal advocacy groups, including MALDEF (Mexican American Legal Defense and Educational Fund), are trying to challenge the court ruling. They’ve asked to step into the case on behalf of students who would be harmed by the repeal. But for now, the future of in-state tuition for undocumented students in Texas remains uncertain.