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In a major policy shift and subject to court approval, the federal government has indicated in a court filing that it plans to resume processing of initial applications under the Deferred Action for Childhood Arrivals (DACA) program for the first time since 2021. This follows a January 2025 federal appeals court ruling that narrowed an existing nationwide injunction to only apply in Texas. The government has indicated it would process initial DACA applications filed before and after the injunction for applicants who do not reside in Texas. However, Texas residents would face a limited version of the program, receiving deportation protection (deferred action) only and no work authorization.
Quick Hits
- If approved, DHS plans to resume processing initial DACA applications blocked since 2021.
- Texas applicants would receive deportation protection only—no work permits or lawful presence.
Established in 2012, the Deferred Action for Childhood Arrivals (DACA) program provides temporary employment authorization and protection from deportation to certain undocumented individuals who entered the United States as minors. While more than 500,000 current DACA beneficiaries continue to receive relief under the program, U.S. Citizenship and Immigration Services (USCIS) adjudication of new applications has been suspended since a federal district court issued a nationwide injunction in 2021.
In January 2025 the U.S. Court of Appeals for the Fifth Circuit ruled the DACA program was unlawful but permitted existing protections to remain in effect. The court additionally narrowed the scope of the existing injunction on new benefits to only apply in Texas. As a result of this ruling, the U.S. District Court for the Southern District of Texas—which initially issued the 2021 nationwide injunction—requested the parties involved in the lawsuit to file briefs on how DACA should be narrowed to comply with the Fifth Circuit's decision.
In response, on September 29, 2025, the federal government indicated that it plans to resume processing initial DACA applications submitted prior to and following the 2021 injunction. With respect to the Fifth Circuit's narrowing of the injunction, the federal government indicated that applicants who reside in Texas may be granted deferred action but would not be eligible for employment authorization or lawful presence classification. Notably, DACA beneficiaries who move to Texas could lose their employment authorization due to the court's ruling to continue the injunction in Texas.
Legal challenges to DACA have persisted for more than a decade and continue. While the Fifth Circuit held that the other states that sued to overturn DACA failed to demonstrate standing to challenge DACA, several states argued in a separate filing this week that DACA should be dismantled. Ultimately, the federal government's plan to resume processing initial DACA applications and limit DACA benefits for Texas-based applicants is subject to the court's approval.
Next Steps
If the court ultimately approves the federal government's plan, employers may wish to prepare for a potential influx of new DACA recipients who are eligible for employment authorization. This excludes Texas, where new applicants will not be granted employment authorization. Employers with operations in Texas may want to be cautious when onboarding DACA recipients who relocate from other states, as they may lose their employment authorization. It will be important that employers, and particularly HR and compliance teams involved in immigration-related employment issues, continue to monitor legal developments surrounding DACA-based employment authorization.
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