Mr. Trump had issued a new and narrower travel ban on March 6, trying to satisfy the courts by removing some of the most contentious elements of the original version.
In a 43-page ruling, US District Court Judge Derrick Watson concluded that the new executive order failed to pass legal muster at this stage and the state had established "a strong likelihood of success" on their claims of religious discrimination.
Trump decried the ruling during a rally Wednesday night in Nashville, introducing his statement as "the bad, the sad news."" Trump said, as the crowd booed the news.
"The order he blocked was a watered-down version of the first one,This is, in the opinion of many, an unprecedented judicial overreach," he added, before pledging to take the issue to the Supreme Court if necessary.
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