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This is in the series of legal setbacks for the president's immigration agenda.
After courts rejected his earlier attempts to impose sweeping restrictions on refugees and travellers from majority-Muslims countries, Trump in September unveiled a new executive order indefinitely banning travellers from Iran, Libya, Syria, Yemen, Somalia, Chad, and North Korea.
Judge Derrick Watson said the travel ban -- Trump's third version of the policy -- "plainly discriminates based on nationality", reports CNN.
The CNN quoted Watson as saying in his order that "The President's executive order suffers from precisely the same maladies as its predecessor: it lacks sufficient findings that the entry of more than 150 million nationals from six specified countries would be 'detrimental to the interests of the United States".
Executive Order 13769, titled Protecting the Nation from Foreign Terrorist Entry into the United States, commonly known as the travel ban, was an executive order issued by Trump.
Immediately, there were numerous protests and legal challenges, with some calling it a "Muslim ban" due to the fact that six of the affected countries had a Muslim majority.