Legal standing to sue is central to various state challenges to immigration policies. A party can only bring a lawsuit if they can demonstrate sufficient connection and harm from the challenged policy. The U.S. Supreme Court may soon address whether indirect economic harm is sufficient to confer standing, particularly in the context of the DACA (Deferred Action for Childhood Arrivals) program. The program grants temporary protection from deportation and a two-year work permit for some undocumented immigrants who came to the United States under the age of 16.

In 2018, Texas and seven other states challenged the validity and constitutionality of DACA, using economic issues to establish standing. Texas won at the district court level, and the case has been moving through various stages and appeals. Meanwhile, DHS has been permitted to extend DACA for individuals who already have it, but it cannot grant any new initial applications based on the court’s ruling.

Following the district court’s initial decision, the Biden Administration aimed to strengthen DACA in accordance with the court’s ruling by making it the subject of a new final rule through a notice-and-comment process. However, the new rule was challenged and ended back in the district court. The court ruled against DACA once more. The case was appealed to the U.S. Court of Appeals for the Fifth Circuit. Almost six years after the initial challenge, in early October 2024, the Fifth Circuit heard oral argument.

During oral argument, the three-judge panel focused on the standing issue. Joined by other Republican-led states, Texas argued that DACA imposes greater costs on them due to of the number of immigrants that are drawn to their states, thus establishing standing. In response, 21 Democratic-led states joined in the case in support of DACA. Led by New Jersey, they argued that DACA recipients are directly contributing to the economies of their states and therefore their states have standing because they would be harmed if DACA were eliminated. This case will likely make its way to the U.S. Supreme Court once the Fifth Circuit rules on standing.

Currently, more than 535,000 people have DACA protection. Whether their status remains stable may ultimately depend upon congressional action.