McALLEN, Texas (Border Report) — A couple of South Texas lawmakers on Thursday were speaking out against the state of Texas for ending in-state tuition for non-citizen students.

In a call with reporters, U.S. Rep. Henry Cuellar, D-Texas, said he opposes Gov. Greg Abbott’s administration ending in-state tuition for “Dreamers,” which began when he was Texas secretary of state in 2001 under the Perry administration.

“We didn’t want to have second-class students, ‘Dreamers,’ that couldn’t go to college because they had to pay out-of-state. So it was to help the ‘Dreamers’ that we have in Texas. And I think over 24,000 ‘Dreamers,’ have taken advantage of this. It’s wrong what they did,” said Cuellar, whose district includes several South Texas counties that border Mexico.

On Thursday, the Justice Department announced that the agency has reached an agreement with the State of Texas to end in-state tuition for students who are in the country illegally.

Texas Attorney General Ken Paxton on Wednesday announced undocumented students would be charged out-of-state tuition rates after the Justice Department filed a court complaint in the Northern District of Texas against the policy that has allowed undocumented students with Texas residency to pay in-state rates regardless of their legal status.

Paxton on Wednesday filed a joint motion in federal court agreeing with the DOJ to stop in-state tuition for “Dreamers,” saying it’s unconstitutional.

A federal judge on Thursday supported the motion.

“I’m proud to stand with Attorney General Bondi and the Trump Administration to stop an unconstitutional and un-American law that gave in-state tuition to illegal aliens,” Paxton said in a statement.”

“Ending this discriminatory and un-American provision is a major victory for Texas,” Paxton said.

The Justice Department said federal law prohibits institutions of higher education from providing benefits to non-citizens that are not offered to U.S. citizens. The Texas laws were in direct conflict of federal law and the Supremacy Clause of the U.S. Constitution, according to the joint motion.

The Texas Dream Act passed the House and Senate committees unanimously during the 77th Legislature in 2001. The law allowed any student living in Texas, regardless of citizenship status, to qualify as a resident for the purposes of receiving in-state tuition

Cuellar said it has helped to boost Texas’ economy because it allowed affordable education and future job opportunities to young immigrants who otherwise might not have received higher education.

“Texas was the first state to pass the Dream Act at the state level,” Cuellar said in response to a question from Border Report. “They call it ‘illegals’ but it’s the Texas Dream Act. And it’s going to have an impact.”

Texas state Sen. Juan “Chuy” Hinojosa, D-McAllen, said Thursday that revoking in-state tuition for “Dreamers” is a “mistake.”

“Since 2001, Texas has been a leader by letting undocumented students access in-state tuition if they meet certain requirements. This policy, started by former Gov. Rick Perry, has opened doors for thousands of students who contribute to our communities. At the University of Texas Rio Grande Valley (UTRGV), which I represent, this decision will take away affordable education from over 800 ‘Dreamers.'” Hinojosa said in a statement.

He said that at UTRGV, in-state tuition for one system is just under $5,000, but is over $9,900 for out-of-state students.

“This isn’t just a few dollars; it’s a real barrier for many families. If ‘Dreamers’ lose in-state tuition, they will be treated like out of state students and will likely not be able to afford college,” Hinojosa said.

Cuellar said in order to qualify, candidates had to have their GED or high school diploma and it spurred them to stay in school.

Hinojosa says ending in-state tuition could cost Texas about $461 million a year in economic activity, including $244 million in lost wages and $216 million in reduced spending.

“These outcomes will hurt businesses and communities across our state and weaken our economy,” Hinojosa said.

In 2024, undocumented students in Texas paid $5.4 billion in state and local taxes, and $81.6 million in tuition, according to La Union del Pueblo Entero (LUPE).

In a statement, LUPE said “the State of Texas is turning its back on its own community. Our students young people who grew up here, who dream of pursuing higher education are being punished for circumstances beyond their control.”

Cuellar says he expects a court appeal to Thursday’s actions.

Sandra Sanchez can be reached at SSanchez@BorderReport.com.