In asking that the case be thrown out, Holder contended that courts should not get involved in political disputes between two branches of government, an argument rejected by the judge.
"Supreme Court precedent establishes that the third branch has an equally fundamental role to play, and that judges not only may, but sometimes must, exercise their responsibility to interpret the Constitution and determine whether another branch has exceeded its power," Jackson ruled.
The decision is a small victory for House Republicans because it keeps alive their case against Holder, though Jackson's ruling does not render a finding on the merits of the allegations.
A spokesman for Holder declined to comment on the ruling.
Representative Darrell Isla, the California Republican who chairs the House Committee on Oversight, called the ruling "a repudiation of the Obama Justice Department."
"This ruling is an important step toward the transparency and accountability the Obama Administration has refused to provide," Isla said in a statement.
The sides tried unsuccessfully to settle the case late last year and early this year.
(Reporting by Nick Brown in New York; Additional reporting by David Ingram in Washington; Editing by Paul Simao)
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