The Obama administration will continue handing out Obamacare subsidies to federal exchange customers despite a federal court’s ruling Tuesday that the subsidies are illegal.

A D.C. Court of Appeals panel ruled Tuesday morning that customers in the 36 states that didn’t establish their own exchange and use HealthCare.gov instead cannot be given premium tax credits, according to the text of the Affordable Care Act itself. (RELATED: Federal Court Takes Down Obamacare: Subsidies In Federal Exchange Are Illegal)

But the White House said in response that it will continue handing out the billions of taxpayer dollars in subsidies. White House press secretary Josh Earnest said that while the case continues to be battled out in the courts, the administration will continue to dole out billions in tax credits to federally-run exchange customers.

“It’s important for people all across the country to understand that this ruling does not have any practical impact on their ability to continue to receive tax credits right now,” Earnest said in a press briefing Tuesday.

A three-judge panel issued the ruling Tuesday, concluding 2-1 that the federal subsidies are illegal. The Department of Justice is seeking an en banc ruling from the appeals court, which would require all judges in the court to rule on the case. Eleven judges on the court would hear the case: seven Democrats and four Republicans.

That decision will likely also be appealed to the Supreme Court.

Follow Sarah on Twitter