The US District Judge Derrick Watson blocked the core provision of the revised executive order two weeks ago arguing that it violated Establishment Clause of the Constitution by disfavouring Muslims.
"The court concludes that, on the record before it, plaintiffs have met their burden of establishing a strong likelihood of success on the merits of their Establishment Clause claim," Watson wrote in his order yesterday.
Watson's earlier decision, issued on March 15, was only a limited freeze of the executive order through a temporary restraining order.
The six Muslim-majority countries are Iran, Libya, Somalia, Sudan, Syria and Yemen. Iraq was on the original ban but removed in the revision.
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One of the practical implications of yesterday's decision is that the Justice Department may now immediately appeal the ruling to the 9th Circuit Court of Appeals, should it choose to do so. But how long it will take for any appeals to be completed remains unclear, according to a CNN report.
Trump signed the new ban on March 6 in a bid to overcome legal problems with a January executive order that caused chaos at airports and sparked mass protests before a Washington judge stopped its enforcement in February.
Trump has said the travel ban is needed for national security.
Hawaii is arguing that the order, which restricts travellers and refugees from six Muslim-majority countries, discriminated against Muslims in violation of the US Constitution.
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