Report says the bill is aimed to force local law enforcement to obey requests from immigration officers to hold illegal immigrants for deportation.
Sanctuary cities came under fire from President Donald Trump in an executive order during his first week as president.
The Texan law was due to come into effect on Friday. But on Wednesday, a federal judge ruled it was unlikely to withstand constitutional tests, and prevented implementation of key parts of the bill, called SB4.
In a 94-page decision, US District Judge Orlando Garcia said that the court could not second guess the legislature but the state could not violate the constitution.
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