2024 law waives one-year-residency required for U.S. citizens

By Guy Page

The U.S. Department of Justice has sued Vermont over state policies that allow immigrants who are in the country illegally to qualify for in-state college tuition and financial assistance, arguing the benefits violate federal law by treating some U.S. citizens less favorably.

In brief, the 2024 law gives preferential status to some non-citizens (see below) and places all non-citizens, regardless of immigration status, on equal eligibility status with Vermonters.

The lawsuit against Vermont was filed Monday, Aug. 10, alongside similar complaints against New York and Connecticut. The Justice Department is asking a federal court to block Vermont laws, regulations and policies that provide reduced tuition rates or financial assistance to people who are not lawfully present in the United States. Vermont Attorney General Charity Clark, who has joined in dozens of suits against Trump administration initiatives, has not posted a response to the August 10 suit. According to media reports she had not, as of yesterday, received notification from the Department of Justice. 

The law, S.191 (Act 136) approved in 2024 and signed by Gov. Scott, expands access to Vermont-funded college financial aid and in-state tuition for residents with certain immigration statuses.

Under the measure, Vermont residents with qualifying immigration statuses may receive VSAC Advancement Grants without satisfying the one-year Vermont residency required of U.S. citizens, provided they meet all other eligibility rules. It creates a similar exception to residency requirements for VSAC’s Incentive Grant program for undergraduate students, although that provision is scheduled to expire July 1, 2027. The qualifying statuses are: (1) declared a refugee, (2) granted parole to enter the United States for urgent humanitarian need, or (3) issued a special immigrant visa as Afghan Allies.

The law also establishes a broader policy that Vermont residents otherwise eligible for state-funded financial aid administered by VSAC cannot be denied solely because of their immigration status. VSAC must develop procedures and application forms consistent with that requirement.

For public higher education, the law prohibits both the Vermont State Colleges System and the University of Vermont from denying in-state tuition solely because of a person’s immigration status — or lack of immigration status — when the person otherwise meets Vermont residency requirements. Immigration-related information collected under the provisions must be kept confidential.

The department contends that federal law prohibits states from giving undocumented immigrants postsecondary education benefits based on residency unless the same benefits are available to U.S. citizens regardless of where they live.

“Congress long ago made clear that States cannot put illegal aliens over our Nation’s own citizens,” Associate Attorney General Stanley Woodward said. “By granting illegal aliens in-state tuition, New York, Vermont, and Connecticut are doing just that.”

Woodward said the lawsuits mean the Justice Department has now challenged every state in the Second Circuit — which includes Vermont, New York and Connecticut — with such policies.

Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division said the dispute is “a simple matter of federal law.”

“Colleges cannot provide benefits to illegal aliens that they do not provide to U.S. citizens,” Shumate said. “This Department of Justice will not tolerate American students being treated like second-class citizens in their own country.”

According to the Justice Department, Vermont’s policies require colleges and universities to provide in-state tuition rates to qualifying residents regardless of whether they are lawfully present in the United States. The federal government is also challenging Vermont provisions allowing undocumented students to receive financial assistance or scholarships.

The Vermont lawsuit is part of a broader Trump administration campaign against state tuition and financial-aid policies for undocumented immigrants. The department said Monday that it has brought 17 lawsuits challenging such policies nationwide.

DOJ said similar litigation has already resulted in favorable orders involving Texas, Kentucky, Oklahoma, Nebraska and Illinois. Other cases are pending against states including California, Minnesota, Virginia, New Jersey, Massachusetts, Rhode Island, Maryland and Colorado.

The Vermont case seeks an injunction preventing the state from enforcing the challenged tuition and financial-aid provisions.