The 5th U.S. Circuit Court of Appeals has delivered a setback to the Deferred Action for Childhood Arrivals (DACA) program, rejecting President Joe Biden’s effort to solidify protections for Dreamers. The ruling, issued on January 16, 2025, upholds claims by Texas and a coalition of Republican-led states that DACA places undue financial strain on their budgets. This decision, which arrives just days before President-elect Donald Trump’s inauguration, underscores the uncertain future of immigration policy in the United States.
The Biden administration had introduced regulatory measures in 2022 to address legal concerns surrounding DACA, which grants deportation relief and work permits to individuals brought to the U.S. illegally as children. Despite these efforts, the court determined that the program remains unlawful. The appeals court upheld much of a 2023 lower court ruling, emphasizing that DACA oversteps the executive branch’s authority by circumventing Congress.
The ruling limits its immediate impact to Texas, meaning current DACA recipients can maintain their protections for now. Approximately 537,000 individuals, often called Dreamers, benefit from the program. However, no new applications will be accepted, leaving tens of thousands in legal limbo. Immigration advocates have expressed concern over the ruling, noting the significant contributions Dreamers make to the workforce and economy.
Republican-led states, led by Texas, argue that DACA imposes financial burdens by increasing costs for public services, including education and healthcare. Conversely, Democrats and immigrant advocacy groups have long maintained that Dreamers, who were brought to the U.S. through no fault of their own, deserve legal protections and a pathway to citizenship.
President-elect Trump has made immigration reform a key priority for his upcoming administration. During his previous term, Trump sought to end DACA but was blocked by a 2020 Supreme Court decision that cited procedural deficiencies in his approach. In recent statements, Trump has signaled an openness to negotiating with Democrats to secure protections for Dreamers but emphasized that such measures must align with his broader goals of reducing illegal immigration and enhancing border security.
