In a stunning escalation of the national immigration battle, the Department of Justice has filed a major federal lawsuit accusing Gov. Gavin Newsom’s California of violating federal law to benefit illegal immigrants over American citizens. The high-stakes case is already sending shockwaves through the country as the Trump administration doubles down on enforcing long-ignored immigration statutes.
Federal Lawsuit: DOJ Says California Broke the Rules
The lawsuit argues that California is unlawfully granting in-state tuition rates and taxpayer-funded financial aid to students who are not legally in the United States—while U.S. citizens from other states are forced to pay full price.
According to federal officials, California’s policy violates a 1996 federal law that prohibits states from giving education benefits to illegal immigrants unless the exact same benefits are offered to all U.S. citizens, regardless of where they live.
The lawsuit directly targets:
- Gov. Gavin Newsom
- Attorney General Rob Bonta
- The UC Board of Regents
- The CSU Board of Trustees
- The California Community Colleges Board of Governors
DOJ: California is Discriminating Against American Families
U.S. Attorney General Pam Bondi condemned the state’s actions, accusing California of rewarding illegal immigration and punishing American families who play by the rules.
“California is giving non-citizens special tuition breaks that American students and families don’t receive,” Bondi said. “Policies like this encourage illegal immigration and strip U.S. citizens of equal treatment.”
Officials say the policy creates a dangerous incentive for illegal immigration and puts a financial burden on hardworking families—especially those struggling with the skyrocketing cost of college tuition.
Newsom Responds—And Blames Politics
The Newsom administration fired back, dismissing the lawsuit as politically motivated.
A spokesperson for the governor said:
“The DOJ has brought three baseless, politically driven cases against California this week. We’re prepared to challenge each one in court.”
California university officials insisted they follow “state and federal law,” though they declined to address the core accusation: that American citizens are being treated as second-class students in their own country.
The Policy at the Center of the Fight
The case hinges on Assembly Bill 540, a 2001 California law that grants in-state tuition to:
- Illegal immigrants who attended a California high school
- U.S. citizens who attended a California high school but moved out of state
Critics say the policy was designed to extend benefits to illegal immigrants first, while giving a minimal legal cover by technically allowing some citizens to qualify.
Courts have upheld the policy before, but this new DOJ lawsuit argues that California has stretched the law far beyond its intent—and far beyond what federal law allows.
Trump Administration Expands Fight Against Illegal Immigration Benefits
This legal challenge is part of a wider federal effort under President Trump to stop states from offering financial incentives to illegal immigrants. Multiple states may soon face similar lawsuits as the administration works to restore uniform immigration enforcement across the country.
If the DOJ wins, the ruling could reshape tuition rules nationwide—and block states from using taxpayer dollars to support unlawful immigration.
Bottom Line for Readers
This lawsuit marks a major turning point in the ongoing clash between Newsom’s sanctuary-state agenda and the Trump administration’s push for strong borders and equal treatment under the law.
The DOJ’s message is clear: No state can put illegal immigrants ahead of American citizens. Not anymore.

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