Kentucky Institutions Should Prepare to Update Guidelines for Undocumented Students Following DOJ Settlement

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The Kentucky Council on Postsecondary Education (CPE) has reached a tentative settlement with the U.S. Department of Justice (DOJ) that would end the state’s policy of granting in-state tuition to students who are undocumented immigrants and graduated from high school in Kentucky. The DOJ filed suit in June, arguing that the Kentucky regulation unlawfully gave noncitizens financial benefits that are not equally available to U.S. citizens residing in other states. Under the proposed agreement, CPE has acknowledged that the Kentucky regulation is preempted by federal law and is therefore invalid. The settlement is not yet final and requires approval by U.S. District Judge Gregory Van Tatenhove.

Kentucky’s policy, which treated all state high school graduates as residents for tuition purposes regardless of citizenship, had been in place for several years. State Attorney General Russell Coleman supported the DOJ’s position, warning that federal law preempts the practice and urging CPE to withdraw the rule rather than engage in costly litigation. Advocacy groups such as the Mexican American Legal Defense and Educational Fund have sought to intervene on behalf of affected students, though their request remains pending.

This lawsuit is part of a broader enforcement strategy under the Trump administration, which has sought to limit state-level benefits for undocumented immigrants through executive orders and litigation. If approved, Kentucky would become the third state this year to roll back tuition benefits for undocumented students following federal challenges. Earlier this year, Texas agreed to dismantle its long-standing policy that permitted in-state tuition for undocumented students in response to a similar lawsuit, and Florida lawmakers reversed a decade-old law that allowed in-state tuition for undocumented students. The DOJ has also targeted Minnesota and Illinois in similar suits, which are currently pending.

The settlement, if finalized, will raise the cost of college for undocumented students in Kentucky, who would be reclassified at out-of-state tuition rates, regardless of where they attended high school. Institutions should prepare to update residency determinations, adjust financial aid communications, and advise impacted students once the settlement receives final court approval.

If you have any questions or need support navigating this change, please contact the authors or Steptoe & Johnson’s Higher Education team for tailored advice.