Mr Trump made his hardline policies toward immigration a key issue ahead of Tuesday's midterm elections, sending thousands of U.S. troops to help secure the southern border and repeatedly drawing attention to a caravan of Central American migrants trekking through Mexico toward the United States.
But according to the new rule, Trump has authority to restrict illegal immigration "if he determines it to be in the national interest".
Thanks to Attorney General Jeff Sessions, asylum rules were reformed to prevent migrants from receiving asylum by claiming they are fleeing violence, gangs, or domestic abuse.
The regulations will be incorporated in a proclamation expected to be issued Friday by President Donald Trump. "It is illegal to circumvent that by agency or presidential decree".More news: 'He died a hero:' Sheriff's sergeant dies in California bar mass shooting
"US law specifically allows individuals to apply for asylum whether or not they are at a port of entry", said Omar Jadwat, director of the American Civil Liberties Union's Immigrants' Rights Project.
Two senior administration officials that spoke to NBC News said that "of the [immigration] measures most likely to be approved by the president, all were likely to lead to a lawsuit".
"The interim rule, if applied to a hypothetical proclamation suspending the entry of aliens who cross the border unlawfully, would bar them from eligibility for asylum, and thereby channel inadmissible aliens to ports of entry, where they would be processed in a controlled, orderly, and lawful manner", one senior administration official told reporters on a conference call Thursday afternoon.
But the administration official argued that "what we're attempting to do is trying to funnel credible fear claims, or asylum claims, through the ports of entry where we are better resourced". "An alien simply crosses the border illegally, finds a border patrol agent, and using well-coached language by lawyers and others that stand there and try to get fees or whatever they can get". Mr. Trump claims he can accomplish this through an executive order, rather than with a constitutional amendment through Congress.More news: New Acting Attorney General is a GOP Loyalist from Iowa
Curbing immigration has been a signature issue for Trump, who pushed it hard in the days leading up to Tuesday's midterm elections, railing against the caravans that are still hundreds of miles from the border.
Trump said he was sending 15,000 active duty military to the border to deal with the problem, in what former President Barack Obama called a political 'stunt.' The troops began laying barbed wire as the migrants traveled toward the US on foot.
Administration officials argue the asylum system is abused by people who are not seeking security in the US but are instead searching for economic opportunity or trying to reunite with family members. His administration also deployed thousands of troops to the border, and said he massive tent cities are being erected to house asylum seekers until there is a decision on their application.
Claims have spiked in recent years, and there is a backlog of more than 800,000 cases pending in immigration court. And in the last five years, the number of those requesting asylum has increased by 2,000 percent, it said.More news: 15 migrant children found in refrigerated lorry at UK port