The Obama administration's new policy to grant temporary legal status to millions of young illegal immigrants will end the immediate threat of deportation but may not give them the same privileges as legal residents, according to Reuters.

Within hours of the policy's going into effect on Wednesday, Aug. 15 Arizona's Republican governor, Jan Brewer, issued an executive order denying public benefits such as driver's licenses to illegal immigrants who are given temporary legal status.

The move by Arizona, which has already clashed with the federal government over a tough immigration crackdown the state passed in 2010, marks its latest challenge to the federal government on immigration policy, with the potential for other states to follow suit.

Nebraska Governor Dave Heineman, a Republican, issued a statement on Friday saying the state will continue to deny driver's licenses, welfare benefits and other public benefits to illegal immigrants even if they are granted temporary legal status.

Most states, with California and Texas the notable exceptions, deny in-state tuition rates at public universities to illegal immigrants and that won't change for those getting deferrals unless states take action on their own.

Texas Governor Rick Perry, a Republican, criticized the Obama policy but appeared to stop short of barring "deferred action" immigrants from obtaining licenses.