Assuming it is legitimate (which is probably not wise), i would assume that some of the advisors were told to come with all options to take care of the criminal illegals in light of the fact that many sanctuary cities popped up, and they weren't going to help enforce the law.
I would further suspect that when Kelly saw that idea, he also saw the problem with protesters and video (for instance of a woman crying as her husband is being rounded up by police where, of course, you can't tell from the video that the guy is a rapist), and he rejected the plan. It is a plan that likely wouldn't have even made it to Trump at all given that his advisor didn't approve it to go forward.
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