The border state of Texas is leading 26 states in challenging the immigration plan. 
The Supreme Court's decision to review the case, which brought by the Department of Justice, is likely to have a strong effect on this year's US presidential race - with immigration policy a major campaign issue for both Democrats and Republicans.
The case will likely be argued in April and decided by late June, about a month before both parties' presidential nominating conventions.
The possible nullification of the Obama order will likely affect millions of Latinos, who are increasingly becoming politically influential and could determine the outcome of the presidential election. 
In the latest Congressional mid-term elections in the US in 2014, up to 25 million Latinos were eligible to vote, although voter turnout remains low.
In the country's most-populous state of California, Latinos account for about 38 percent of the population, according to the Public Policy Institute of California.
'Correcting legal error'
A spokesman for the New York Immigration Coaltion told Al Jazeera on Tuesday that the Supreme Court's decision fast tracks the possibility for millions of immigrants to stay and work legally in the US.
"We are pleased with the decison of the Supreme Court. This is what we have been pushing for," Thanu Yakupitiyage said. 
"It signifies a lot to immigrant communities, who have been waiting for a year now, because all of 2015, President Obama's actions were delayed."

She said she is confident of the legality of the order and that the Supreme Court will rule in Obama's favour.
"Before President Obama put forward his executive action, there were lawyers and whole teams looking at the constitutionality of whether he could do this. And based on that, he is able by executive action to do that."
In New York, around 300,000 immigrants could potentially benefit from the rule, which could come into effect as early as June or July, she added. 
In a statement sent to Al Jazeera, Mairele Hincapie, executive director of the National Immigration Law Center, said the Supreme Court "has the opportunity to remedy this grievous legal and moral error".
Hincapie said she is confident the court will uphold the legality of the oder.
"The legal argument is clear: President Obama, like every president before him for nearly half a century, can and should exercise discretion in immigration matters," she said.
"But the moral, economic, and societal arguments in favour of the president’s immigration initiatives are no less important."

--IBTP-- credit to www.aljazeera.com