AUSTIN (KXAN) — A federal appeals court rejected an effort to revive the Texas Dream Act on Thursday, leaving in place a ruling that ended in-state tuition for undocumented students at Texas public colleges and universities.

The ruling continues to block the Texas Dream Act, which for nearly 25 years allowed eligible undocumented students to qualify for resident tuition rates if they:

Had resided in Texas for at least three years;

Graduated from a Texas high school; and

Signed an affidavit stating their intent to become a lawful permanent resident as soon as possible.

In a 2-1 decision, the 5th U.S. Circuit Court of Appeals ruled students, immigrant advocacy groups and Austin Community College could not intervene to defend the law after Texas declined to do so. The court said intervention would have been futile because federal law preempts the Texas statute.

The case stems from a lawsuit filed by the U.S. Department of Justice in June 2025 challenging the 2001 law. Within hours of the suit being filed, Texas agreed the law conflicted with federal immigration law, and a federal judge permanently blocked its enforcement.

Students for Affordable Tuition, La Unión del Pueblo Entero (LUPE), Austin Community College and University of North Texas student Oscar Silva later sought to intervene, arguing they should be allowed to defend the law after state officials chose not to.

Writing for the majority, Judge Jerry E. Smith said federal law prohibits states from offering in-state tuition to undocumented immigrants based on residency unless the same benefit is available to all U.S. citizens regardless of where they live. The court also ruled the groups could not appeal the consent judgement because they were never allowed to intervene in the case.

Judge Irma Carrillo Ramirez dissented, arguing the district court should have first determined whether the lawsuit presented a genuine legal dispute because Texas and the federal government agreed on the outcome before the case was filed.

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