A federal judge ordered Columbia University student and activist Mahmoud Khalil to be released on bail, after he has spent over three months in detention.
Mr Khalil became a symbol of the the Trump administration's crackdown on universities and foreign students when US Immigration and Customs Enforcement arrested him in New York on 8 March.
Mr Khalil was a prominent voice in Columbia's pro-Palestinian protests last year, and his arrest sparked demonstrations in New York and Washington, DC.
US District Judge Michael Farbiarz determined Mr Khalil was not a flight risk or threat to his community, and could be released during immigration proceedings, according to the BBC's partner CBS News.
Mr Khalil graduated from Columbia while he was in detention. His wife took his place in the ceremony and accepted his diploma on his behalf.
The government has not accused Mr Khalil of a specific crime.
He has been held by Immigration and Customs Enforcement (ICE) under two charges.
Secretary of State Marco Rubio invoked a rarely-used portion of the Immigration and Nationality Act to argue Mr Khalil's presence in the US could pose "potentially serious adverse foreign policy consequences."
Last week, Judge Farbiarz ruled Rubio's justification for detaining Mr Khalil was likely unconstitutional and said the US government could not detain or deport the 30-year-old legal US resident under that reasoning.
Attorneys for the Trump administration then said Mr Khalil was being held for a different reason, failing to disclose information when he applied for lawful permanent residency in 2024.
Mr Khalil, who has been held in Louisiana since his arrest, remained in custody.
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Mr Khalil's attorneys have argued that the government is violating their client's free speech rights. They also asked the New Jersey federal court to free him on bail or transfer him closer to his wife and baby, who was born during his detention.
Throughout Friday's two-hour hearing, Judge Farbiarz, who presides in the District of New Jersey, expressed scepticism of the government's requests to keep Mr Khalil detained while his case moves foward.
He also said Mr Khalil's arrest and detention on the second charge was "highly unusual."
"It's overwhelmingly unlikely that a lawful permanent resident would be held on the remaining charge here," Judge Farbiarz said, according to CBS News.
He added that "there is an effort to use the immigration charge here to punish the petitioner" for his protests against Israel's military actions in Gaza.
The ruling from the bench sets the stage for Mr Khalil to soon leave detention. Details of his bail requirements were not immediately available.
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