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President Donald Trump's effort to crack down on sanctuary cities suffered another legal setback Thursday as a federal appeals court in Chicago upheld a nationwide injunction against making federal grant funding contingent on cooperation with immigration enforcement.

A three-judge panel-all of whom are Republican appointees-ruled that there were strong indications that the administration exceeded its legal authority in trying to implement the new conditions without approval from Congress.

The ruling came on a suit filed by the City of Chicago after the Justice Department imposed the new conditions last July in a bid to encourage state and local governments to provide more assistance to immigration authorities.

One judge on the 7th Circuit Court of Appeals panel, Reagan appointee Daniel Manion, said he would narrow the injunction solely to protect Chicago. However, the two other judges assigned to the case said the nationwide injunction appeared to be justified.

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