DACA Court Case Update: Fifth Circuit Ruling and Texas Impact

(TEXAS) — The U.S. Court of Appeals for the Fifth Circuit reshaped the legal fight over DACA on January 17, 2025, by declaring parts of the program unlawful while keeping renewals available nationwide and narrowing an injunction to Texas.

That ruling has left the program in place for current recipients as of March 2026. U.S. Citizenship and Immigration Services continues to process DACA renewal requests, including work authorization, across the country, but it still does not process new initial applications.

The decision also sent the case back to U.S. District Judge Andrew Hanen for further action, leaving Texas recipients facing a distinct layer of uncertainty if he changes how the program operates in the state.

DACA, short for Deferred Action for Childhood Arrivals, began in 2012 and protects certain undocumented immigrants brought to the United States as children from deportation while allowing them to work legally. The policy has faced years of litigation, and the Fifth Circuit’s latest ruling marked another turn in a long-running court battle centered in Texas.

What the Fifth Circuit Decided

In its January 17, 2025, decision, the Fifth Circuit partially upheld Hanen’s earlier rulings against the Biden administration’s 2022 DACA Final Rule. The court found that parts of the rule violated the Immigration and Nationality Act on both procedural and substantive grounds.

Judges split the program into separate parts. They severed DACA’s forbearance provision, which treats recipients as a low priority for removal, from the work authorization and related benefits, and they held that the benefits portion was unlawful.

At the same time, the court narrowed the injunction to Texas after finding that only that state had shown standing among the plaintiff states. It also left in place an existing stay while the case continues, pointing to “immense reliance interests” among more than 500,000 recipients.

That stay has preserved the status quo into 2026. Current DACA holders across the United States, including in Texas, can still seek two-year renewals and renew their employment authorization documents.

What Happens Next in Court

The case did not end with the appellate ruling. On March 11, 2025, the Fifth Circuit issued its mandate and formally returned the case to Hanen to work out how the ruling should apply, including a Texas-specific remedy that could limit work permits while preserving forbearance.

Hanen later signaled that process was still moving. On July 22, 2025, he directed the parties to submit briefs on next steps, but as of March 2026 he has not modified his order or wound down benefits for Texas renewal recipients.

For now, USCIS operations reflect that legal pause. The agency continues to accept and process renewal requests from current DACA recipients nationwide, including applications for work authorization.

Renewals, Deadlines, and Filing Rules

USCIS guidance in March 2026 urges current recipients to file renewal requests 120–150 days before their DACA expires. The agency also allows filing up to six months early as processing delays average six months.

That timetable matters. Recipients who wait too long risk a lapse in both deferred action and work authorization while their cases remain pending.

People whose DACA expired less than one year ago can still file as renewals. Those whose grants expired longer ago are treated as initial applicants, and USCIS accepts those filings but does not adjudicate them.

• Renewal applicants must submit Form I-821D.
• They must also submit Form I-765 and Form I-765WS.
• The filing fee is $555 online or $605 by mail.
• Electronic payments are now required for most filings.

USCIS is processing those renewals under the stay in every state, including Texas. Approved applicants continue to receive two-year renewals that allow them to keep working and, in states that allow it, maintain access to driver’s licenses and other benefits.

Still, the process is not always smooth. Delays and Requests for Evidence remain common, increasing pressure on recipients to file complete applications and seek legal review when problems arise.

Initial Applications Remain Frozen

New first-time DACA applications remain frozen. USCIS accepts those applications from all states, but the agency continues to hold them without processing, a policy that has remained in place since injunctions issued in 2021.

That leaves a large group outside the program. Advocacy estimates cited in the case place the number of eligible Dreamers blocked from entering DACA at roughly 100,000–200,000.

The Fifth Circuit ruling did not change that immediate reality. It preserved renewals for people already in the program, but it did not reopen the door to new applicants.

Why Texas Matters Most Now

Texas now sits at the center of the next stage. While DACA renewals continue there for now, the remand gives Hanen room to craft a remedy that could affect work authorization in the state even if he leaves forbearance intact.

That distinction could matter sharply for recipients. A Texas-specific order limiting employment authorization would leave people protected from removal as a low enforcement priority but unable to rely on the same work permit they hold today.

Outside Texas, the current structure remains more stable. The Fifth Circuit’s narrower injunction means the immediate threat from the case falls on one state rather than the whole country, even though the program’s legal future remains unsettled.

The court’s approach also reflects how much weight judges placed on existing recipients’ reliance on the program. More than 500,000 people remain active DACA holders, and the court chose not to disrupt renewals while lower-court proceedings continue.

That group reached 535,200 active recipients at its 2025 peak. Since 2012, more than 800,000 people have participated in DACA.

Broader Stakes for Recipients and Employers

The broader policy stakes stretch beyond the courtroom. Recent studies cited in the litigation say DACA recipients contribute $32 billion annually, and supporters of the program argue that disruptions would hit industries including healthcare and tech.

Workforce figures have also featured in the debate. Recipients have posted 92% workforce participation, along with higher education rates, reinforcing the court’s description of widespread reliance.

At the same time, the legal pressure on DACA has never fully eased. The program has depended on executive action rather than legislation, leaving recipients exposed to each new challenge in federal court and each shift in presidential policy.

That vulnerability has sharpened in 2026. Even though DACA recipients still hold low-priority status for Immigration and Customs Enforcement enforcement under the forbearance portion of the program, wider enforcement changes have added to anxiety, including expanded Section 287(g) agreements that increase local-federal cooperation.

What Recipients Are Being Told to Do

For recipients, timing now carries practical and legal weight. A lapse in status can increase scrutiny from immigration authorities, particularly as 2026 policy changes target noncitizens more broadly.

The advice emerging from the current court posture is direct. Recipients nearing expiration are moving to renew immediately, especially if they are within six months of losing coverage.

• Keep approval notices with you.
• Carry employment authorization cards.
• Retain proof of residence.
• In encounters with authorities, assert your rights to silence and counsel.

Some recipients are also examining backup options beyond DACA. The possibilities mentioned in current guidance include H-1B transitions, family-based petitions, state-level relief, and parole-in-place options for some people who have lived in the United States for more than 10 years.

None of those alternatives changes the immediate court landscape. What matters most right now is that renewals remain open, initial requests remain stalled, and the next move rests largely with Hanen and any future appeals.

Possible Appeals and Political Pressure

Those appeals are likely to come. After Hanen acts, the parties could return to the full Fifth Circuit or seek review at the U.S. Supreme Court, which in DHS v. Regents in 2020 blocked an earlier effort to rescind DACA while recognizing federal agencies’ room to act.

Politics also hangs over the litigation. A Trump administration returned after the 2024 election and has signaled stricter immigration enforcement, though the legal status of DACA still turns on the courts and on whether Congress acts.

Congress has not done so. Despite repeated pushes for the Dream Act and other bipartisan proposals, lawmakers have yet to create a permanent status for DACA recipients.

That leaves the program in its familiar position: active, limited, and unstable. For current recipients, DACA still offers a work permit and temporary protection from removal. For new applicants, it remains closed in practice. For Texas, the next order could redraw the terms again.

The Fifth Circuit’s January 17, 2025, ruling did not end DACA, but it changed the map. Renewals continue nationwide. Initial applications remain on hold. And in Texas, where the case began and where the next decision may land hardest, recipients are waiting to learn whether the protection they can still renew will continue to include the right to work.