A California ban on the sale of auto insurance policies that include travel restrictions has been blocked by a federal court.
The US Supreme Court in April blocked the state from implementing the policy as it was enacted in 2014.
It also temporarily halted enforcement of the ban in the state’s coastal counties.
The ruling, issued by the US Court of Appeals for the 9th Circuit in San Francisco, said that the ban “contains substantial and substantial burdens” on businesses and consumers.
“The ban is a violation of federal law and of federal regulations,” Justice Sonia Sotomayor wrote in the majority opinion.
“California’s ban violates the constitutional right to travel, and is unconstitutionally overbroad,” she added.
The decision, while somewhat narrow, still gives the Trump administration until December to decide whether to appeal the ruling.
It is the second time this year that the Trump White House has faced a court challenge to the ban, with a separate legal challenge in March.
Trump has vowed to reverse the ruling and restore the travel ban.
A ruling from the 9-0 majority in March said the ban would “create an unprecedented and pervasive burden on businesses”.
“This Court cannot and should not, in the name of religious liberty, condone an arbitrary, discriminatory and unlawful imposition of a ban on a class of persons on the basis of their religion,” Sotomays opinion said.
“This is not a case about a religious test, but about the constitutionality of a policy that has no legitimate secular purpose.”
The ruling also noted that there was no evidence that the policy had caused any economic harm, and that it would not impact “anyones ability to make a livelihood”.
“The mere fact that a policy exists, or that the person who operates it has an economic interest in it, does not mean that it has the effect of burdening a person’s religion,” Justice Sotomaya said.