The Trump administration will settle a lawsuit that challenged a policy targeting New York state residents after Justice Department attorneys admitted that officials made false statements in federal court in defending the regulation.

In a proposed settlement filed in the U.S. District Court for the District of Columbia Friday, the Justice Department and Arnold & Porter Kaye Scholer attorneys said the administration agreed to not block New York residents from programs that streamline security checks over the state restricting federal authorities’ access to motor vehicle records.

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