A North Dakota federal judge has halted a Biden administration policy that would have allowed Deferred Action for Childhood Arrivals (DACA) recipients to obtain health insurance coverage under the Affordable Care Act (Obamacare). This decision comes as a victory for Kansas Attorney General Kris Kobach and a coalition of 19 states who challenged the rule in court.

Kobach expressed little surprise at the ruling, suggesting the judge's stance was apparent during pre-election hearings. He criticized the Biden administration for what he characterized as manipulating legal definitions to extend benefits to those not legally entitled to them. He likened the administration's approach to something out of "Alice in Wonderland."

The image above depicts immigration rights activists rallying in front of the U.S. Supreme Court in Washington, D.C., on Nov. 12, 2019. (Mandel Ngan/AFP via Getty Images)

Judge Dan Traynor, a Trump appointee, issued the preliminary injunction, agreeing with the state attorneys general that the Biden rule contradicted existing law prohibiting Obamacare benefits for undocumented immigrants. The injunction prevents the rule's enforcement in the plaintiff states.

Judge Traynor reasoned that offering healthcare access would incentivize individuals who might otherwise leave these states to remain. The states involved in the suit were Alabama, Arkansas, Florida, Idaho, Indiana, Iowa, Kansas, Kentucky, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, South Carolina, South Dakota, Tennessee, Texas, and Virginia.

Had the Biden administration's rule taken effect, it was estimated that over 100,000 uninsured individuals would have gained access to health insurance. The Department of Health and Human Services (HHS) intended to achieve this through what they termed "technical modifications" to the definition of "lawfully present," a key criterion for eligibility.

This image shows a group of migrants waiting for Border Patrol processing in the Rio Grande Valley, Texas. (Bill Melugin/Fox News)

The DACA program, established by executive action under President Obama in 2012, addresses the status of young undocumented immigrants brought to the U.S. as children. It was implemented through a DHS memorandum, bypassing Congressional approval. The Trump administration previously attempted to terminate DACA, but the Supreme Court blocked the move in 2020.

The photo above is of Republican Kansas Attorney General Kris Kobach (AP Photo/John Hanna)

Kobach highlighted the potential financial burden on taxpayers had the Biden rule been implemented, estimating the cost of Obamacare subsidies could reach millions or even hundreds of millions of dollars annually. The Centers for Medicare & Medicaid Services (CMS) acknowledged the lawsuit but declined to comment on ongoing litigation.

This report includes contributions from Fox News Digital's Adam Shaw.