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The justices rejected administration arguments that the eight-year-old DACA programme is illegal.
The Senate rejected both a bipartisan immigration plan and a more restrictive proposal by Trump.
The 77-year-old told stories about the Dreamers in the US during the record breaking speech.
Thousands of illegal immigrants are living in fear are the US government continues to dispute immigration laws.
The House voted 266 to 150 to extend federal funding for another three weeks.
A divided Congress is hoping to end a budget impasse tonight.
The White House’s latest proposals have been criticised for “using the lives of young people as bargaining chips”.
Dubbed ‘cruel’ by Obama, the decision now leaves Congress with six months to come up with an alternative.
The Obama-era programme is being rescinded.