A federal appeals court on Monday upheld Alina Habba’s disqualification as U.S. Attorney for the District of New Jersey, dealing a setback to President Trump’s efforts to maintain his preferred appointees while Senate confirmations remain pending.

The three-judge panel of the U.S. Court of Appeals for the 3rd Circuit ruled unanimously that Habba, a former personal lawyer to Trump, is not legally serving as the state’s top federal prosecutor. The court also prohibited her from holding the position in an “acting” capacity, rejecting a workaround the administration attempted to keep her in the role.

“Clearly, the current administration has faced legal and political obstacles in placing its appointees,” wrote Judge D. Michael Fisher, a George W. Bush appointee. “It’s an attempt to elevate Alina Habba to Acting U.S. Attorney highlights these challenges, but the people of New Jersey and the staff of the U.S. Attorney’s Office deserve clarity and stability.”

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