On August 10, 2026, the Department of Justice sued the state of Vermont, Vermont State Colleges, the University of Vermont and State Agricultural College, and the Vermont Student Assistance Corporation over the state’s policy allowing in-state tuition benefits for undocumented students. In 2024, Vermont passed legislation which allows undocumented students to pay in-state tuition rates if they meet various criteria, including 1) attending a Vermont high school for at least two years prior to graduation, and 2) graduating from a Vermont high school or earning a GED in the state. The Department of Justice claims Vermont is violating federal law and discriminating against U.S. citizens who reside outside the state by providing benefits to undocumented students while denying them to out-of-state U.S. citizens.