merely held that the district court did not err when it held that Texas had standing to sue," Yale-Loehr said. "The true test will be on the merits of the case. That could be a few years down the road, after a trial."

Justice Department spokesman Patrick Rodenbush said the broader appeal of the case continues before the 5th Circuit Court of Appeals. He said the department believes the program is "consistent" with existing laws "as well as five decades of precedent by presidents of both parties."

Texas officials, however, were pleased by the ruling.

Gov. Greg Abbott, a Republican who pushed the lawsuit when he served as the state's attorney general, called the appeals court decision another sign that Obama overreached legally with his immigration actions.

"We live in a nationgoverned by a system of checks and balances, and the president's attempt to bypass the will of the American people was successfully checked again today," Abbott said.

Lt. Gov. Dan Patrick, also a Republican, said "the appeals court Judges told the President to quit wasting time trying to circumvent the law."

He added: "Mr. President — please follow the law and reverse your illegal executive action now."