A federal appeals court decided Wednesday that the Trump administration may not withhold federal funds from California’s immigrant-friendly "sanctuary" cities and counties.

The U.S. 9th Circuit Court of Appeals, in a 2-1 decision, upheld a district judge’s ruling in favor of San Francisco and Santa Clara County, which sued over the administration’s threats to withhold money to jurisdictions that have passed laws limiting local law enforcement cooperation with federal immigration authorities, reports the Los Angeles Times.

But the 9th Circuit also removed a nationwide injunction against President Trump's directive, concluding there was not enough evidence presented in the case so far to support blocking it beyond California.