In 2001, Texas set a precedent by enacting House Bill 1403, commonly known as the Texas Dream Act, which grants eligible undocumented students access to in-state tuition rates at public colleges and universities. This landmark legislation—the first of its kind in the nation—has enabled countless students to pursue higher education, contributing significantly to the state’s economy and cultural fabric. Over the past two decades, 25 states have followed Texas’ example, recognizing the economic and social benefits of broadening access to higher education.
However, recent developments, such as the 10 bills filed in Texas–HB 160, HB 232, HB 424, HB 978, HB 979, HB 1324, HB 1815, HB 2535, SB 1798, SB 1205–and Florida’s repeal of a similar law, underscore the pressing need to safeguard Texas’ commitment to educational accessibility.
A Pillar of Educational Opportunity
The Texas Dream Act allows undocumented students who meet specific criteria—including graduating from a Texas high school, residency in the state for at least three years, and an affidavit of intent to apply for permanent residency—to qualify for in-state tuition rates.
This policy has been instrumental in making higher education attainable for many students who might otherwise be unable to afford it. Out-of-state tuition rates are typically three times higher than in-state rates, presenting a significant financial barrier. As of the most recent data, approximately 57,000 undocumented students are enrolled in higher education institutions across Texas. In 2021, a total of 20,137 students—representing just 1.5% of all college and university enrollments in the state—were using the Texas Dream Act to pursue their education, preparing to become essential contributors to Texas’ workforce.
The Economic Consequences of Repeal
Repealing access to in-state tuition for undocumented students would have severe economic consequences. Research by the Council indicates that if the Texas Dream Act is repealed, Texas stands to lose more than $461 million annually in economic activity, including $244.4 million in lost wages and $216.9 million in diminished spending power. Such outcomes would not only harm affected students, but also negatively impact higher education institutions, businesses, and communities across the state. Ensuring access to higher education does more than benefit the individual–it reinforces Texas’ workforce, tax base, and overall economic competitiveness.
Economic and Social Contributions
Undocumented students bring considerable economic benefits to Texas. In fiscal year 2021 alone, these students paid $81.6 million in tuition and fees, directly supporting the state’s educational institutions. Beyond tuition, in 2023, undocumented immigrants in Texas contributed $5.4 billion in state and local taxes and made up 9% of the state’s workforce, underscoring their role as active participants in the state’s economy.
Moreover, research shows that in-state tuition policies lead to significant financial gains, with these students’ earning potential increasing by more than 57%. According to Council research, beneficiaries of the Texas Dream Act have earned $33 billion more than they would have without a college degree, resulting in more than $28.5 billion in additional economic activity in Texas.
The Imperative to Protect the Texas Dream Act
Despite its longstanding success, the Texas Dream Act has faced multiple repeal attempts since its inception. The persistence of these challenges to in-state tuition—and recent repeals in states like Florida—indicate that the Act’s future cannot be taken for granted. Advocates must remain proactive, emphasizing the Act’s benefits and mobilizing support to counteract potential threats.
Opponents argue that the policy lacks enforcement mechanisms to ensure students pursue legal status, but this critique fails to acknowledge the law’s broader economic and educational benefits. Business leaders, including organizations from across the state, have long expressed their support for maintaining in-state tuition access.
In 2019, Texans for Economic Growth, a business coalition housed by the American Immigration Council, introduced the Texas Compact on Immigration, emphasizing support for in-state tuition. The compact affirms: “Texas has a long and proud tradition of embracing immigrants and leading the country in bipartisan, common-sense immigration policies. We urge state leaders to protect tuition equity and continue offering in-state tuition to all Texas high school graduates who seek higher education and wish to contribute their talents to our vibrant economy.”
Initially launched with 50 members, the coalition has since expanded to over 160 business leaders and organizations, recognizing immigrants as vital to Texas’s continued success.
The Path Forward
By protecting this commitment, Texas policymakers not only honor the aspirations of countless students but also ensure the continued economic and social vitality of Texas.
Texas has long been a leader in policies that bolster economic growth and workforce development. Preserving in-state tuition access ensures Texas remains an attractive place to live, work, and do business. The path forward is clear: safeguarding educational opportunities for all Texas students is not just a moral imperative but an economic necessity.
FILED UNDER: Education
