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Misinformation as Trump Moves to Cut Aid for some California Students

The Department of Justice claims California's tuition policy violates a 1996 federal law, affecting over 100,000 undocumented students who currently receive in-state tuition benefits.

  • Last week, the U.S. Department of Justice sued California seeking to block in‑state tuition, scholarships and subsidized loans for some students without legal status, sparking panic among students like Michelle.
  • The Justice Department argues the suit rests on a 1996 federal law preempting state benefits, while California counters AB 540 was drafted to avoid a residency test, as the California Supreme Court rejected the federal interpretation in 2010.
  • Glitches in the new FAFSA and form rules that blocked submissions when parents lacked Social Security numbers amplified student fears, despite AB 540 requiring three years of California high school or community college attendance, which can save students over $100.
  • Courts could issue short‑term rulings that leave students uncertain as the legal process continues, while the U.S. Department of Justice may seek a preliminary injunction and California's Department of Justice vows to fight, calling the administration misguided.
  • The Trump administration's multi‑state lawsuits, including Texas first, target California's policies, risking impacts on over 100 students without legal status, say legal experts.
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Bias Distribution

  • 50% of the sources lean Left, 50% of the sources are Center
50% Center

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Local News Matters broke the news in on Wednesday, November 26, 2025.
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