SB4 allows Texan officials to prosecute migrants or order them returned to Mexico.
The US Supreme Court has allowed Texas to arrest and jail migrants, as part of the state's new tough immigration law.
Under the law, known as SB4, local and state police can arrest and prosecute those suspected of illegally crossing the Mexican border.
The Biden administration has called the law unconstitutional.
The decision comes a day after it was blocked by the same court while emergency appeals played out.
Enforcing immigration laws - including arrests - has typically been handled by the federal government.
SB4 now gives that power to Texan officials, allowing them to prosecute migrants or order them returned to Mexico.
Punishments would range from misdemeanours to felonies and potential imprisonment, or fines of up to US$2,000.
Penalties for those who illegally re-enter Texas after having been deported could go up to 20 years in prison, depending on a person's immigration and criminal history.
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