The US is to end deportations of illegal immigrants who came to the US as children and to offer the chance to apply for work permits.
Under a new plan, those aged between 16 and 30 who have lived in the US continuously for five years would be eligible to stay in the US.
The plan, which goes into effect immediately, is expected to affect as many as 800,000 people.
The move is seen as addressing a key Latino concern in an election year.
US President Barack Obama and his Republican opponent Mitt Romney are courting Hispanic voters in key states ahead of November's election.
