While the state has fought the administration over immigration laws, it says it will honor certifications granted under the program called Deferred Action for Childhood Arrivals.
A state trooper spokesman, Sgt. Steven Jarrett, says certain offices will begin issuing licenses under the program on Friday.
The state says 631 people have been approved for certification in Alabama, and as many as 1,500 could be.
The administration program grants valid federal work permits to qualified applicants who were brought into the United States as children without legal authorization.
Jarrett says the state determined the program isn't at odds with Alabama's tough law cracking down on illegal immigrants.
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