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An enrollment drop could cost the Texas economy hundreds of millions of dollars, according to the reports.
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The state isn't providing schools with guidance and advocates say students who still qualify for lower rates are being asked to pay thousands more.
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The GOP tax and spending bill raises the child tax credit from $2,000 to $2,200, adjusts it annually for inflation, and enshrines it permanently into U.S. tax code. However, another provision requires that the child and both parents all have Social Security numbers.
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The directive comes after a court rescinded undocumented students' eligibility for in-state tuition. It's unclear what information schools might ask from students and how their immigration data will be protected.
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Texas officials suggested the federal government could pick up construction. However, during President Trump's first term, his administration built about one-third of what the state was able to put up in the same amount of time.
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More than 60 anti-Trump protests are planned in major cities across the state this weekend, including Dallas, Houston, Austin and San Antonio.
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Their filing says the lawsuit that struck down in-state tuition for undocumented students was "contrived" to keep their voices out.
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While protests in Houston, San Antonio and Dallas remained mostly peaceful, tensions flared in Austin Monday evening.
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An hour after the march's start Monday, protesters who neared a downtown federal building dispersed after law enforcement fired tear gas canisters at them.
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Shortly after the U.S. Department of Justice sued to block Texas from giving in-state tuition to immigrant students without legal status, state Attorney General Ken Paxton announced the two parties had filed a joint motion asking a court to permanently end the policy.