Trump Travel Ban Suspension Upheld By US Appeals Court 

In a major legal setback to Donald Trump's administration, a federal appeals court refused Thursday to reinstate President's executive order banning travelers from seven predominantly Muslim nations.

Today's ruling came in a challenge to Mr Trump's order filed by the states of Washington and Minnesota.

Mr Trump's January 27 executive order barred entry for citizens from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen for 90 days and imposed a 120-day halt on all refugees, except refugees from Syria who are barred indefinitely.

Who's affected by the travel ban?

• Firstly, Mr Trump signed the executive order on January 27
• It barred travellers from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen from entering the US for 90 days
• It also stopped all refugees from entering the country for 120 days
• Except refugees from Syria — they've been banned indefinitely
• Green-card holders had been stopped during the first weekend of the order. Since then, the White House has said those residents wouldn't be affected moving forward
• But, last Friday, US District Judge James Robart suspended Mr Trump's executive order.

In a unanimous decision, the panel of three judges from the San Francisco-based 9th U.S. Circuit Court of Appeals declined to block a lower-court ruling that suspended the ban and allowed previously barred travelers to enter the U.S. Now the government can go for an appeal to the U.S. Supreme Court. The Justice Department said it was reviewing the decision and considering its options.

The court rejected the administration's claim that it did not have the authority to review the president's executive order.

"There is no precedent to support this claimed unreviewability, which runs contrary to the fundamental structure of our constitutional democracy," the court said.

The judges noted that the states had raised serious allegations about religious discrimination.

Following news of the ruling, Trump tweeted, "See you in court, the security of our nation is at stake!"

U.S. District Judge James Robart in Seattle issued a temporary restraining order halting the ban last week after Washington state and Minnesota sued. The ban temporarily suspended the nation's refugee program and immigration from countries that have raised terrorism concerns.

Justice Department lawyers appealed to the 9th Circuit, arguing that the president has the constitutional power to restrict entry to the United States and that the courts cannot second-guess his determination that such a step was needed to prevent terrorism.

The states said Trump's travel ban harmed individuals, businesses and universities. Citing Trump's campaign promise to stop Muslims from entering the U.S., they said the ban unconstitutionally blocked entry to people based on religion.

Both sides faced tough questioning during an hour of arguments Tuesday conducted by phone — an unusual step — and broadcast live on cable networks, newspaper websites and social media. It attracted a huge audience.

The judges hammered away at the administration's claim that the ban was motivated by terrorism fears, but they also challenged the states' argument that it targeted Muslims.

"I have trouble understanding why we're supposed to infer religious animus when, in fact, the vast majority of Muslims would not be affected," Judge Richard Clifton, a George W. Bush nominee, asked an attorney representing Washington state and Minnesota.

Only 15 percent of the world's Muslims are affected by the executive order, the judge said, citing his own calculations.

"Has the government pointed to any evidence connecting these countries to terrorism?" Judge Michelle T. Friedland, who was appointed by President Barack Obama, asked the Justice Department attorney.

The lower-court judge temporarily halted the ban after determining that the states were likely to win the case and had shown that the ban would restrict travel by their residents, damage their public universities and reduce their tax base. Robart put the executive order on hold while the lawsuit works its way through the courts.

After that ruling, the State Department quickly said people from the seven countries — Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen — with valid visas could travel to the U.S. The decision led to tearful reunions at airports round the country.

During his remarks at a law enforcement conference, Trump said the courts blocking his divisive immigration order "seem to be so political."

Trump's own Supreme Court pick, Neil Gorsuch, finds the president's comments about the judicial branch "disheartening" and "demoralizing," a spokeswoman for the nomination confirmation team told NBC News on Wednesday.

The Supreme Court has a vacancy, and there's no chance Gorsuch, will be confirmed in time to take part in any consideration of the ban.

The ban was set to expire in 90 days, meaning it could run its course before the court would take up the issue. The administration also could change the executive order, including changing its scope or duration.

— Compilation of CNBC.com and NBC News reports