The U.S. Justice Department has filed a lawsuit against Penn State University over its in‑state tuition policy for students who are in the country illegally. The case shows how federal immigration rules can affect state‑level college benefits.

The Department of Justice argues that federal law bars states from giving preferential benefits to illegal aliens, regardless of residency status. Stanley Woodward, a top Justice Department official, said the government is working to ensure no state or university policy gives preferential treatment to illegal aliens over U.S. citizens.

Since the Trump administration began suing in 2022, it has targeted both states and individual schools, ending tuition breaks in Kentucky, Illinois, Nebraska, Oklahoma, Texas, Kansas and Florida. More recent challenges include a lawsuit against the University of Delaware, following earlier actions in those states.

Penn State, which enrolls about 86,000 students, is now facing the complaint and a university spokesperson said the school is reviewing it. Supporters of the tuition breaks argue the policy is legal if it offers the same rates to U.S. citizens who are state residents and high‑school graduates.

The lawsuit illustrates the federal view that states cannot provide tuition discounts that favor undocumented students over citizens. The outcome could determine whether similar in‑state tuition programs survive across the country.