The Trump administration on Tuesday dropped its appeal of a November court decision that blocked it from withholding transportation funding to states that refuse to cooperate with immigration enforcement.

The Department of Transportation filed a motion to dismiss its appeal on Tuesday, ahead of the U.S. Court of Appeals for the First Circuit issuing a decision.

“I am pleased that the Trump Administration has accepted defeat and agreed to drop its appeal of this decision,” said California Attorney General Rob Bonta, who led 21 other states in challenging DOT’s funding conditions.

The administration’s retreat from the case represents a significant victory for blue states, which have faced a barrage of DOT attacks related to immigration.