According to initial reports, young immigrants who are in the United States illegally but have generally abided by the law during their time here would qualify.
It is believed that up to 800,000 immigrants would be affected by the policy change.
U.S. Homeland Security Secretary Janet Napolitano said in a statement that the country's immigration laws must be enforced in a firm and sensible manner. She went on to say that they are not designed to remove productive young people adding, "Discretion, which is used in so many other areas, is especially justified here."
The new policy shares some similarities to the DREAM Act, which did not pass the U.S. Senate in 2010.
It would have created a path to citizenship for illegal immigrants who came to the U.S. as children and attended college or served in the military.
Today's policy announcement by President Barack Obama will not create a path toward citizenship, but illegal immigrants who qualify would not have to fear being deported.
To be considered for the program illegal immigrants would have to have come to the United States before age 16 and would have to have lived in the U.S. for at least five continuous years.
They would also need to be enrolled in school or have a high school diploma, a GED or have served in the military.
Additionally, they will need a generally clean criminal record and can not be older than age 30.
President Obama is scheduled to discuss the details of the plan in a 1:15 p.m. address in the Rose Garden.