As more states reconsider tuition equity laws for undocumented students, new data reveal the real fiscal impact of these policies on taxpayers in 2025.
What if I told you that taxpayers in 18 states are paying $245 million annually for something most don't even know exists?
Connecticut tops the list at $6.52 per taxpayer
"The same $245 million could serve 15,000+ legal students or hire 4,000+ teachers."
- EDsmart Analysis based on College Scorecard data
But here's the thing: most taxpayers have no idea they're paying for this. Let's explore why these costs remain hidden, then dive into the data that reveals the true taxpayer burden.
This isn't a conspiracy - it's just how complex state budgets work. Here's why these costs are "hidden":
State education budgets are massive, complex documents. A $245 million cost gets buried in billions of dollars of spending, making it nearly invisible to the average taxpayer.
Unlike property taxes or gas taxes, this cost doesn't appear as a separate line item on tax bills. It's embedded in the general education budget.
Terms like "tuition equity" and "in-state tuition" don't immediately signal "taxpayer subsidy" to most people.
"The costs are often embedded within broader educational budgets, making them less visible to the general public."
Now that we understand why these costs are hidden, let's examine the real data behind the taxpayer burden using authoritative sources.
Using real data from the College Scorecard (5,648 institutions) and current policy status, here's what we found:
Our analysis combines multiple authoritative data sources to provide the most comprehensive picture of taxpayer burden:
The tuition gap calculation uses the simple but effective formula: TUITIONFEE_OUT - TUITIONFEE_IN for each institution, then aggregated by state using median values to account for outliers.
If you live in one of the 18 states with active policies, you're paying for this whether you know it or not. The burden varies significantly by state:
Our analysis uses a conservative 15% college enrollment rate among DACA recipients, based on academic research from UC Davis and other studies showing that undocumented students face significant barriers to higher education access.
This conservative approach means our $245 million figure is likely an underestimate of the true taxpayer burden, as it doesn't account for:
To put these numbers in perspective, the $245 million annual burden represents:
While $245 million annually may seem manageable in isolation, the cumulative impact over time reveals the true scale of this taxpayer burden:
These figures assume current enrollment levels remain constant
Now let's examine the state-by-state breakdown to see exactly where this taxpayer burden falls across America.
Our analysis covers 18 states with active in-state tuition policies for undocumented students. Here are the states with the highest taxpayer burden:
The complete breakdown shows significant variation across all 18 states, with Connecticut residents bearing the highest burden at $6.52 per person annually, while Vermont residents pay nothing due to minimal tuition gaps.
To put the $245 million annual burden in perspective, here's what taxpayers could get with the same funding:
Here's the complete breakdown of how much each state's taxpayers are paying annually:
5x higher than national average
58% of total cost across all states
$67.4M saved by Texas/Florida repeals
15,000+ students could be served instead
It's worth noting that the policy landscape has changed significantly in 2025:
These repeals removed $67.4 million in costs from our analysis, which now focuses on the 18 states with active policies.
The recent policy reversals in Texas and Florida represent a significant shift in the political landscape:
Texas Impact: The federal lawsuit that led to Texas's repeal removed approximately $62.3 million in annual taxpayer burden, affecting an estimated 14,250 students who previously qualified for in-state tuition.
Florida Impact: The legislative action in Florida removed $5.1 million in annual costs, affecting about 5,250 students.
These changes demonstrate the political volatility of undocumented student tuition policies and raise questions about the long-term sustainability of such programs in other states.
Based on recent political trends and the Texas/Florida precedents, several states may be considering policy changes:
This volatility makes the $245 million figure particularly important for policymakers to understand, as it represents the current baseline before potential future changes.
These dramatic variations and recent policy changes raise critical questions about the future of education funding. Let's explore what this data means for policymakers and taxpayers.
The data reveals significant policy implications for state legislators, budget officials, and education advocates:
Connecticut's $6.52 per taxpayer burden is nearly 5x higher than the national average, highlighting the need for standardized policy approaches.
The $245 million could fund 15,003 additional legal students or hire 4,083 new teachers, providing clear alternatives for education funding.
Most states don't itemize these costs, making it difficult for taxpayers to understand where their money goes.
Recent repeals in Texas and Florida demonstrate the unstable nature of these policies, requiring careful consideration of long-term sustainability.
Both sides of this policy debate have valid economic arguments:
This analysis represents the most comprehensive examination of taxpayer burden for undocumented student tuition subsidies to date.
This analysis provides the data you need to take informed action in your state:
Now that you have the complete picture, let's summarize the key findings and their implications for education policy.
Using real College Scorecard data from 5,648 institutions and current policy status, this analysis reveals a $245 million annual taxpayer burden for in-state tuition subsidies to undocumented students across 18 states with active policies.
The data shows significant variation in taxpayer burden, with Connecticut residents paying $6.52 per person annually while Vermont residents pay nothing due to minimal tuition gaps. This variation reflects the different approaches states take to higher education pricing.
The analysis also reveals the opportunity cost of these policies: the same $245 million could fund 15,003 additional legal students or hire 4,083 new teachers, providing clear alternatives for education funding.
Recent policy changes in Texas and Florida demonstrate the political volatility of these programs, with both states repealing their in-state tuition policies in 2025, removing $67.4 million in taxpayer burden.
This analysis provides policymakers, taxpayers, and education advocates with the data they need to make informed decisions about education funding priorities and the true cost of undocumented student tuition subsidies.
This analysis represents the most comprehensive examination of taxpayer burden for undocumented student tuition subsidies to date, using real data from 5,648 institutions and current policy status as of October 2025.