Defense officials say the Department of Homeland Security has asked the Pentagon to fund the construction of 270 miles of border wall this year as part of a counter-drug effort.
Wednesday’s ruling lifted a lower court’s order blocking the Trump administration from using the funds along the southern border.
Three contracts have been awarded to build about 65 miles of new border wall in Texas.
About 7% of the funds for the $3.6 billion wall are being diverted from eight projects in the U.S. territory, a key spot in the U.S. military's efforts to deter North Korea and counter China's growing military.
Tent courtrooms opened Monday in two Texas border cities to help process thousands of migrants who are being forced by the Trump administration to wait in Mexico while their requests for asylum wind through clogged immigration courts.
The Trump administration is ready to open a tent court on the border to help handle tens of thousands of cases of asylum seekers forced to wait in Mexico, with hearings held entirely by videoconference.
An appeals court on Wednesday upheld a freeze on Pentagon money to build a border wall with Mexico, casting doubt on President Donald Trump's ability to make good on a signature campaign promise before the 2020 election.