WASHINGTON (CNN) -- A federal judge on Tuesday blocked the Trump administration from enforcing a threat to take away funds from sanctuary cities -- the latest blow from the federal judiciary to President Donald Trump's immigration agenda.

In his ruling, Judge William H. Orrick sided with Santa Clara County, the city of San Francisco and other jurisdictions, who argued that a threat to take away federal funds from cities that do not cooperate with some federal immigration enforcement could be unconstitutional.

In making the ruling apply nationwide, Orrick blocked the government from enforcing a key portion of Trump's January executive order on immigration, which ordered the Department of Homeland Security and Justice Department to block cities who do not cooperate with federal immigration enforcement from receiving federal funds.

While Orrick's ruling does not find the policy unconstitutional, he did find that the counties and cities that challenged the law demonstrated they could face "immediate irreparable harm" if the policy were allowed to be put into place, and that their constitutional challenge could succeed once the case is fully heard.

White House Chief of Staff Reince Priebus vowed Tuesday to "take action" to appeal the ruling.

"It's the 9th Circuit going bananas," Priebus told CNN and other reporters during an interview in his West Wing office, referring to the appellate court that would hear an appeal to the case and has already sparred with the administration.

He called it "forum shopping" -- and said it was absurd that an administration could not put in a "reasonable restriction on how this money is spent."

In a statement, the Justice Department said it would continue to enforce grant requirements and compliance with the law.

"Further, the order does not purport to enjoin the department's independent legal authority to enforce the requirements of federal law applicable to communities that violate federal immigration law or federal grant conditions," spokesman Ian Prior said.

In a scathing late night statement, the White House called the ruling an "egregious overreach by a single, unelected district judge."

"Today's ruling undermines faith in our legal system and raises serious questions about circuit shopping. But we are confident we will ultimately prevail in the Supreme Court, just as we will prevail in our lawful efforts to impose immigration restrictions necessary to keep terrorists out of the United States," the statement says.

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