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Abstract Policies that expand the rights of marginalized groups provide an additional level of structural integration, but these changes do not always come with broad social acceptance or recognition. What happens when a legally marginalized group attains increased rights but not full political or social inclusion? In particular, what are the mental health implications of these transitions for impacted groups? We bring together theories of liminal legality and stress process to offer a framework for understanding how expansions in the legal rights of a highly politicized and vulnerable social group can be initially beneficial, but can attenuate due to renewed or new stress events, chronic stressors, and anticipatory stressors. We use the case of Latina/o immigrant youth who transitioned from undocumented legal status to temporarily protected status under the Deferred Action for Childhood Arrivals (DACA) program. Analyses of representative California statewide survey data from 2007 to 2018, combined with surveys and in-depth interviews with DACA recipients, suggest that without full social and structural inclusion, legal transitions that expand rights will produce short-term psychological benefits that do not hold up over time.