In-State Tuition for International Students: Texas HB 1403 and California AB 540 Explained

What "In-State Tuition" Actually Means for Foreign Students

Public universities in the United States set two tuition tiers. Use our GPA Calculator to maintain the academic standing these programs require. Residents of the state pay the lower rate because state tax dollars subsidize their education. Everyone else, including US citizens from other states and international students, pays the higher out-of-state rate.

At 4-year public universities, average out-of-state tuition in 2025 is $28,297 versus $9,750 for in-state students, a difference of $18,547 per year, according to EducationData.org (February 2025). Over a 4-year degree, the gap reaches $74,188 before room, board, or fees.

The key question is not whether you are a "foreign student" but whether your immigration status and residency history qualify you to be classified as a state resident for tuition purposes.

Who Actually Qualifies: A Status-by-Status Breakdown

Lawful Permanent Residents (Green Card Holders)

Green card holders are eligible to establish domicile in any US state for tuition purposes. The standard requirement is 366 days of continuous residency in the state before the first day of instruction, according to UC Berkeley's Office of the Registrar .

This is the most straightforward path for former international students. An F-1 student who obtains a green card through employment sponsorship, a family petition, or another route restarts the clock from the date their status changes. After 366 days of living in a state, they reclassify as a resident.

I-485 Filers (Adjustment of Status Applicants)

Some states allow the residency clock to start from the date a student files Form I-485, the Application to Register Permanent Residence, even before the green card is issued. Arkansas has a six-month continuous residency requirement from the date of I-485 petition, according to Reddy Neumann Brown PC . Policies vary widely across states.

This matters for students whose adjustment of status is approved while they are already enrolled. Check the specific state's higher education authority, not your university's general admissions page, for the exact policy.

F-1 Visa Holders

F-1 visa holders cannot establish domicile for in-state tuition purposes in any US state. UC Berkeley's Registrar explicitly lists F-1 as an "ineligible nonimmigrant visa." Finaid.org states the same: "a non-immigrant visa, such as a B, F, J or M status visa, will generally not be considered eligible for state residency status."

The logic is that F-1 status is temporary by design. States only grant residency classification to those with immigration status permitting them to "remain indefinitely in the United States," per Finaid.org . An F-1 visa does not meet that standard.

Undocumented Students Who Attended a US High School

This is the largest and most legislated category. Twenty-two states plus the District of Columbia have tuition equity laws allowing students who attended and graduated from an in-state high school to pay resident tuition, regardless of immigration status, as of October 2025 (sources vary between 22 and 23 states; the table below reflects states confirmed at publication), according to Inside Higher Ed .

These laws do not distinguish between undocumented students and out-of-state US citizens. Any nonresident who meets the high school attendance requirement qualifies. Texas's 2001 law, the first of its kind, was written this way deliberately, as reported by Inside Higher Ed .

Typical eligibility requirements across these states:

• Attended a public or accredited private high school in the state for 2 to 3 years
• Graduated from that high school or received an equivalent diploma (GED/TASC)
• Signed an affidavit committing to apply for legal immigration status when eligible
• Enrolled in a public college or university in the same state

Asylum Seekers

Oregon passed House Bill 2586 in May 2025, extending in-state tuition to asylum seekers at public universities. The law requires the student to be in the active legal process of seeking asylum and have not previously sought residency in another state.

At Oregon State University for 2025-26, total in-state cost of attendance runs approximately $37,000 annually versus $62,000 total out-of-state cost of attendance, a savings of $25,000 per year, according to OPB . Utah and Rhode Island have passed similar legislation. Oregon noted that federal asylum cases average 3.5 years to resolve, making this access material for students mid-degree.

States That Currently Offer Tuition Equity Laws

The following states have laws allowing qualifying noncitizens to pay in-state tuition, as reported by Inside Higher Ed (as of October 2025):

At least 14 of these jurisdictions also extend state financial aid to qualifying students, including grants and scholarships, per Inside Higher Ed .

2025 Rollbacks: Three States Ended Access, One Under Legal Challenge

The political landscape for tuition equity shifted sharply in 2025.

Florida

Governor Ron DeSantis signed legislation in February 2025 eliminating in-state tuition for undocumented students, effective July 1, 2025. Approximately 6,500 students who previously held waivers had to be reevaluated by that date. Florida's out-of-state tuition exceeded in-state rates by more than triple during the 2023-24 academic year, per Inside Higher Ed .

Texas

The Department of Justice sued Texas in June 2025, arguing the Texas Dream Act violated federal law. Hours after the suit was filed, US District Judge Reed O'Connor granted a permanent injunction ending the policy. This immediately affected 57,000 Dreamers and undocumented students enrolled in Texas universities, plus 197,000 students under 18 currently in Texas high schools, according to Inside Higher Ed .

Oklahoma

Oklahoma's law was repealed on August 29, 2025, per NILC .

Kentucky

Kentucky reached a proposed settlement in litigation seeking to terminate its in-state tuition policies for undocumented students. As of late 2025, advocacy groups had intervened in court to challenge the settlement, and a federal judge had not finalized it, per NILC . Kentucky appears in the equity states table under 'Under legal challenge' to reflect this ongoing dispute.

Ongoing Legal Battles in 2025-2026

The DOJ sued Minnesota, Illinois, Colorado, Oregon, and Washington in summer 2025, alleging their tuition equity laws favored noncitizens over out-of-state US citizens. Minnesota prevailed: on March 27, 2026, US District Judge Katherine Menendez dismissed the suit. The judge found Minnesota "misinterpreted the law" because its statute grants benefits to any student who attended a Minnesota high school for three years, regardless of immigration status, meaning out-of-state US citizens also qualify by that criterion, per CBS Minnesota .

Litigation continues against other states. Students relying on these policies should monitor their state's status before making enrollment decisions.

California: The Most Detailed Case Study

California's AB 540, passed in 2001, is the most detailed tuition equity framework in the country. To qualify, a student must:

1. Attend a California high school, adult school, or community college for at least three full-time years
2. Graduate from a California high school, earn an associate's degree from a California community college, or meet transfer requirements to a UC or CSU campus
3. Submit a California Nonresident Exemption Request form to the institution

F-1 visa holders are explicitly excluded. The UC system's AB 540 page lists F visas among the "nonimmigrant visas" making a student ineligible.

Students who do qualify also access the California Dream Act Application (CADAA), which opens Cal Grants, university grants, and community college fee waivers regardless of immigration status, per the California Student Aid Commission .

When This Applies to You vs. When It Does Not

How to Reclassify: The Process at Most Universities

Universities do not reclassify students automatically. You must apply. The general steps:

1. Obtain documentation of your qualifying immigration status or high school attendance
2. Submit a Residency Reclassification Application to your university's registrar before the semester's deadline (deadlines vary by school; some require submission 30 days before the semester starts)
3. Include supporting documents: state ID or driver's license, lease agreement or utility bills showing 366+ days of in-state address, immigration status documentation (green card, I-485 receipt notice, asylum approval, or high school transcripts)
4. The tuition classification officer at your institution makes the final determination
5. If denied, most schools have an appeal process

Every state and institution sets its own rules. Contact your school's Office of the Registrar or Tuition Classification Office directly, not the international student office, which handles visa compliance rather than residency classification.

Sources

• EducationData.org: Average In-State vs. Out-of-State Tuition (Feb 2025)
• UC Berkeley Registrar: Immigration and Residency for Tuition Purposes
• UC Admissions: AB 540 Nonresident Tuition Exemption
• California Student Aid Commission: California Nonresident Tuition Exemption
• OPB: Oregon House Bill 2586, Asylum Seekers In-State Tuition (May 2025)
• Inside Higher Ed: Florida Ends In-State Tuition for Undocumented Students (Feb 2025)
• Inside Higher Ed: Texas Ends In-State Tuition for Undocumented Students (June 2025)
• Inside Higher Ed: 4 Things to Know About In-State Tuition for Noncitizens (July 2025)
• Texas Tribune: Texas Dream Act Repeal (June 2025)
• CBS Minnesota: DOJ Lawsuit Dismissed on Minnesota In-State Tuition (March 2026)
• NILC: Basic Facts About In-State Tuition
• Finaid.org: State Residency Requirements for In-State Tuition
• Reddy Neumann Brown PC: In-State Tuition Options for Green Card Holders and Applicants