"The Rule is contrary to law and must, as a result, be set aside," the judge wrote in his ruling.
Laredo officials made a counteroffer for the federal government to use a city office building for asylum hearings instead of a tent in a flood plain along the Rio Grande.
Homeland Security said the reduced number of migrant arrests along the border can help agencies focus on more humanitarian aid for children and other immigrants.
"This will ease the burden of migrants who are returned to Mexico with little money and lots of needs," a director in Juarez said.
"They followed the legal checklist by first presenting themselves at a point of entry, and this is how America is paying them back–with cruelty and disrespect for the law," said Southern Poverty Law Center Senior Supervising Attorney Luz Virginia Lopez.
"To bring hundreds of people here every week without providing the necessary resources to house and feed them is inhumane," Broward County Mayor Mark Bogen said.
"We got a perfect storm now because of broken laws," the Republican senator said.
To handle the surge of asylum seekers arriving at the southern border, churches have opened their doors for those in need of shelter.
"Shoot em'!" a crowd member suggested at a Florida rally after President Donald Trump asked how the U.S. can stop migrants arriving at the border.
"Trump's true motives are clear—to deter asylum seekers and punish people who apply for protection under our laws," said ACLU Immigrants' Rights Project senior staff attorney Michael Tan.
"Families are fleeing violence and turmoil to seek refuge at our borders, and Donald Trump wants to charge them a fee to gain asylum," Democratic presidential candidate Julian Castro said.
"This is the Trump administration's latest assault on people fleeing persecution and seeking refuge in the United States," ACLU Immigrants' Rights Project Director Omar Jadwat said.
"The president likes the idea and Democrats have said they want these individuals into their communities, so let's see if it works and everyone gets a win out of it," the White House press secretary said.
"The Trump administration cannot simply ignore our laws in order to accomplish its goal of preventing people from seeking asylum in the United States," said the deputy director of the ACLU's Immigrants' Rights Project.
The decision to move asylum seekers to tent shelters comes as the U.S. Customs and Border Protection agency warns that it has reached its "breaking point."
Immigration advocates have sounded the alarm over "inhumane and inexcusable" treatment of asylum seekers at the U.S.-Mexico border.
"When you're looking at this photo, you're looking at a mirror," Representative Alexandria Ocasio-Cortez of New York said.
"Such caravans are the result of Congress's inexcusable failure to fully fund a needed physical barrier," DHS Secretary Kirstjen Nielsen said.
"Any time a refugee or immigrant committed a gruesome crime in the United States, for example, Stephen Miller would come down to the [communications] office demanding a press release about it," wrote Cliff Sims.
The Trump administration has resettled fewer refugees than the official cap.
An investigation by The Daily Beast found 19 private prisons were being paid to house around 18,000 migrants, or about 41 percent of the 44,000 total migrants being held by ICE.
"It may seem like a lot of money to you...but it is a small sum compared to everything that the United States has stolen from Honduras," organizer Alfonso Guerrero Ulloa said.
"It was just an amazing night of people coming together or a good cause," Lukas Volk said.
Thousands of Central Americans have died or gone missing in their bid to claim asylum in the U.S.
Police said that one woman and two men were killed when the vehicle lost control and rolled over in a sparsely populated area about 60 miles east of San Diego.