The decision requires state officials to resume full grant payments to a not-for-profit group that helps settle refugees. But state officials say they will seek a stay of the order while they appeal the decision.
Gov. Mike Pence's move, announced in the wake of Friday's terrorist attacks in Paris, won applause from fellow Indiana Republicans, but criticism from a legal scholar who said he might be overstepping his authority.
Although comprehensive immigration reform with bipartisan support might not be passed into law soon, the recent executive action by the Obama administration has some employer-friendly improvements in immigration law.
Pence said Tuesday he did not learn about the placement of more than 200 immigrant children with Indiana families until reading about it in news reports. Thousands of unaccompanied children have migrated to the U.S. illegally this year.
Persons who entered the country illegally and were attending Indiana public colleges when a state immigration law passed two years ago would again be eligible for in-state tuition rates under a bill approved by the Indiana House.