Tens of thousands of DACA recipients in Texas may soon be stripped of their ability to work in the U.S. lawfully, with consequences that could ripple across other states. In January 2025, the U.S. Fifth Circuit Court of Appeals held that portions of a 2022 DACA regulation – those that grant employment authorization and “lawful presence” – are unlawful. The case has returned to U.S. District Judge Andrew Hanen, who must now decide how to implement this ruling in practice—and his decision could upend national DACA policy if other states follow Texas’s lead.
What changed
The Fifth Circuit held that portions of a 2022 DACA regulation – those that grant employment authorization and “lawful presence” – are unlawful, while preserving the part of DACA that provides protection from removal as lawful and severable from the other provisions. Critically, the Court limited the geographic scope of a prior nationwide injunction to the state of Texas, meaning that practical effect of the decision would apply only within Texas.
On September 29, the federal government submitted a proposal outlining how it recommends Judge Hanen implement the Fifth Circuit’s ruling, detailing a Texas-specific DACA structure, tying access to work authorization and lawful presence to a recipient’s address on record with U.S. Citizenship and Immigration Services (USCIS). Under this plan, simply moving into Texas could trigger the revocation of both a work permit and lawful presence within 15 days.
New DACA applicants in Texas, or those reapplying after a lapse, could receive deferred action but not employment authorization or lawful presence. Current recipients in Texas who obtained DACA before July 16, 2021, remain temporarily shielded by a court-ordered stay, but if that stay is modified, their work permits could be revoked with only 15 days’ notice.
Why it matters
For Texas-based practitioners, this is a filing and counseling emergency. An estimated 221,000 Texans are eligible for the program, and 97% of DACA-eligible individuals are employed. If work permits are revoked in Texas, the labor-market impact is immediate and severe. The effects of legal and administrative shifts are already being felt; since the June 2025 injunction on the Texas Dream Act, at least four Texas colleges have blocked DACA recipients from receiving in-state tuition, and more than 20 DACA recipients have been detained by immigration authorities despite their protections.
Beyond Texas, the precedent matters nationally. Opposition from Republicans and the Trump administration has stalled progress toward a permanent solution. If Judge Hanen approves a Texas-only work-permit ban, more than 530,000 DACA recipients nationally could be forced out of the labor force within two years, resulting in billions of dollars in turnover, recruitment, and retraining expenses for employers, and other states may attempt to establish similar claims.
For renewal and reapplication strategy: clients approaching DACA renewal should file early to avoid gaps in authorization before any Judge Hanen order takes effect. New applicants in Texas face a bifurcated status (deferred action without work authorization), which may affect housing, credit, and employment eligibility. Practitioners should also counsel clients on relocation risk: moving into Texas could trigger revocation of both work permit and lawful presence within 15 days.
Way forward
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For clients in Texas: File or renew DACA immediately if eligible. Use the runway before Judge Hanen’s decision to secure current authorization. Do not relocate to Texas without consulting counsel on the practical impact.
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For practitioners: Monitor Judge Hanen’s docket (U.S. District Court, Southern District of Texas, Texas v. United States) for implementation orders. Expect an order within the coming months. Prepare client advisories on the risk of 15-day revocation if clients are in or planning to enter Texas.
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For national policy watchers: Track whether other states attempt to join Texas in establishing standing for similar DACA challenges. If Judge Hanen’s Texas order survives appeal, expect copycat filings.
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Document reliance interests: Gather evidence of client reliance on DACA work authorization for employment, housing, education, and state-issued identity documents. This may be relevant if litigation continues or clients face removal proceedings.
Disclaimer
This article is not legal advice and does not constitute the rendering of legal services by articles.folaform.com. Fola Editorial is a software company, not a law firm. DACA policy and litigation remain fluid, and federal courts can change course at any time. Verify all information against the primary source documents, including the Fifth Circuit decision (Texas v. United States, Fifth Circuit, Jan. 17, 2025) and any orders issued by Judge Hanen. Consult a licensed immigration attorney for advice on your specific situation.