A three-judge panel in the U.S. Court of Appeals on Friday reaffirmed the ruling limiting President Trump’s asylum ban at the U.S.-Mexico border, blocking the president’s Day 1 order.

Shortly after taking office, Trump issued a proclamation seeking to end asylum for all migrants besides those who entered the U.S. at ports of entry, contending the change was needed to address the “invasion” at the border with Mexico.

The American Civil Liberties Union sued the administration on behalf of nonprofits in early February. Last month, a U.S. District Court Judge,........

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