USCIS announced that there will NOT be an appeal process for Deferred Action. Once it is denied, it cannot be overturned.


In the case of a denied application, the applicant will only be placed in removal proceedings if there is a factor that heightens the priority for removal. This includes fraud: if an applicant is found to have willfully misrepresented him or herself in an attempt to get Deferred Action, he or she will be placed into removal proceedings. 

 A related question is whether the information in your Deferred Action application will be kept confidential. According to USCIS now, information form the applications will not be shared with ICE or CBP - the other immigration-related branches of the Department of Homeland Security UNLESS you are considered a threat to national security, committed fraud in your application, or have been convicted of a criminal offense. But, it seems that the information in your application may be seen by other federal agencies for purposes other than deportation.