US District Judge William Alsup granted a request by California and other plaintiffs to prevent President Donald Trump from ending the Deferred Action for Childhood Arrivals program while their lawsuits play out in court.
Alsup said lawyers in favor of DACA clearly demonstrated that the young immigrants "were likely to suffer serious, irreparable harm" without court action. The judge also said the lawyers have a strong chance of succeeding at trial.
DACA has protected about 800,000 people who were brought to the US illegally as children or came with families who overstayed visas. The program includes hundreds of thousands of college-age students.
Trump suggested that an immigration agreement could be reached by addressing young immigrants and border security with what he called a "bill of love," then by making comprehensive changes that have long eluded Congress.
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US Attorney General Jeff Sessions announced in September that the program would be phased out, saying former President Barack Obama had exceeded his authority when he implemented it in 2012.
"DACA covers a class of immigrants whose presence, seemingly all agree, pose the least, if any, threat and allows them to sign up for honest labor on the condition of continued good behavior," Alsup wrote in his decision.
"This has become an important program for DACA recipients and their families, for the employers who hire them, for our tax treasuries, and for our economy."
Alsup also questioned whether the administration had conducted a thorough review before ending the programme.
Brad Rosenberg, a Justice Department attorney, said the administration considered the effects of ending DACA and decided to phase it out over time instead of cutting it immediately.
DACA recipients will be allowed to stay in the US for the remainder of their two-year authorizations. Any recipient whose status was due to expire within six months also got a month to apply for another two-year term.
People took out loans, enrolled in school and even made decisions about whether to get married and start families on the basis of DACA and now face "horrific" consequences from the loss of the program, said Jeffrey Davidson, an attorney for the University of California governing board.
"The government considered none of this at all when they decided to rescind DACA," he said at the hearing.
DACA recipients are commonly referred to as "dreamers," based on never-passed proposals in Congress called the DREAM Act that would have provided similar protections for young immigrants.
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