In less than a month, thousands of number plates could be classed as invalid by police computers.
The Nebraska Licensing Authority (NLA) plans to cancel the registrations of vehicles whose owners cannot provide proof of legal residency by the end of the year.
Fearing terminated employment, divided families and even exile because of the clampdown, a human rights group has filed a lawsuit in an attempt to block the blanket revocation of vehicle registrations.
The lawsuit accuses NLA officers of interfering in immigration matters and it outside of their jurisdiction
The NLA sent out letters advising vehicle owners that their number plates would be invalidated unless they showed proof of legal residency.
Numbers indicate 3,497 people have visited the NLA offices to provide proof of residency and keep their number plates. NLA officials have noted the number plates, however law enforcement officers have been told not to issue tickets, make arrests or seize plates from violators until the new year.
NLA spokesman Craig Andrews said the threat to cancel number plates is not aimed at illegal immigrants. It is an attempt to enforce the law, deter fraud and ensure that vehicle number plates are "legal a registered" he said.