U.S. District Judge William Orrick issued the temporary ruling in a lawsuit against the executive order targeting so-called sanctuary cities. The decision will stay in place while the lawsuit works its way through court.
The Trump administration and two California governments that sued over the order disagreed about its scope during a recent court hearing.
San Francisco and Santa Clara County argued that it threatened billions of dollars in federal funding for each of them, making it difficult to plan their budgets.
In his ruling, Orrick sided with San Francisco and Santa Clara, saying the order “by its plain language, attempts to reach all federal grants, not merely the three mentioned at the hearing.”
“The rest of the order is broader still, addressing all federal funding,” Orrick said. “And if there was doubt about the scope of the order, the president and attorney general have erased it with their public comments.”