TEXAS — The U.S. Court of Appeals for the Fifth Circuit upheld a lower court decision on Friday, deeming the Deferred Action for Childhood Arrivals policy unlawful.

The unanimous decision by a panel of the 5th U.S. Circuit Court of Appeals in New Orleans — two judges appointed by Republican presidents, Ronald Reagan and George W. Bush, and one by Democrat Barack Obama — is the latest blow for the Deferred Action for Childhood Arrivals program, whose beneficiaries have lived in legal limbo for more than a decade.

Approximately 535,000 immigrants brought to the U.S. illegally as children receive deportation relief and work permits through the “Dreamer” program, based on U.S. Citizenship and Immigration Services data.

The appeals court ruled that this decision should only be applicable to Texas, as this is the only state so far to file a lawsuit against DACA.

The 5th Circuit has limited and paused its ruling, pending appeal, enabling current DACA recipients to keep their status until the case concludes.

In 2012, the DACA program, for childhood arrivals, was created under President Barack Obama. This program shielded undocumented young immigrants from deportation while granting them work permits.

This ruling comes just days before President-elect Donald Trump is inaugurated. The incoming Trump administration’s approach to the case and the program’s future remain uncertain.

This latest case involves a new version of the rule issued by President Joe Biden in 2022. It represented little substantive change from the 2012 memo that created DACA, but it was subject to public comment as part of a formal rule-making process intended to improve its chances of surviving legal muster.

U.S. District Judge Andrew Hanen in Houston said the executive branch had overstepped its authority and barred he government from approving new applications. He left it intact for current beneficiaries while appeals played out in court.

Texas Attorney General Ken Paxton, who led the challenge on behalf of Republican-led states, called Friday's ruling “a major victory.”

“I look forward to working with President-elect Donald Trump to ensure that the rule of law is restored, and the illegal immigration crisis is finally stopped,” Paxton said.

The U.S. Homeland Security Department didn't immediately respond to a message seeking comment late Friday.

In 2016, with one vacancy on the Supreme Court, the justices deadlocked 4-4 over an expanded DACA and a version of the program for parents of DACA recipients, keeping in place a lower court decision for the benefits to be blocked. In 2020, the high court ruled 5-4 that the Trump administration improperly ended DACA by failing to follow federal procedures, allowing it to stay in place.

The full ruling can be found below.