The Department of Justice has sued Penn State over its policy of offering in-state tuition to some undocumented students, part of a broader federal effort challenging similar benefits.

The lawsuit asks a court to determine whether the policy complies with federal law and how immigration status and lawful presence affect eligibility for resident tuition.

Prosecutors argue that a university policy alone cannot replace an affirmative state enactment authorizing the benefit.

Penn State says tuition residency generally depends on Pennsylvania domicile and whether a student is in the state primarily for reasons other than education; its materials have also been described as inconsistent about eligibility and pricing.

If the court rules against Penn State, affected students could be charged out-of-state rates, potentially adding about $23,696 a year at University Park.

The allegations have not been adjudicated, and the complaint does not say how many students receive the benefit or what it is worth; Penn State was contacted for comment.

The case is assigned to U.S. District Judge Matthew Brann, and the parties must confer before filing any motion to dismiss.

A case-management conference will set the timetable, while the parties meet their disclosure and discovery obligations; no hearing date has been set and the filings do not change the tuition policy.

Other state cases have produced mixed results, including a 2025 development in Texas and a Minnesota case dismissed because eligibility turned on high school attendance rather than residency.

TheDream.US, MALDEF and the Presidents’ Alliance on Higher Education and Immigration criticized the DOJ actions, warning they could restrict Dreamers’ access to tuition equity.

Gaby Pacheco of TheDream.US said many affected students arrived in the United States as children and have pursued their education there.

The organizations argue that in-state tuition policies widen access to college and benefit state and local economies.