Thirty-one-year-old Salman, the wife of Pulse Nightclub shooter Omar Mateen, is staying behind bars for now - the government has 48 hours to appeal.
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Salman has been charged with aiding and abetting Mateen in the deadly shooting. Prosecutors say she helped scope out potential locations for the attack.
Judge Donna Ryu, however, finds the evidence highly debatable.
"I find that the government has not established by clear and convincing evidence that Ms. Salman presents a danger to the community," Ryu said.
Salman's statements were made toward the end of a 16-hour interrogation without an attorney. She also suffers from PTSD.
If released, Salman will be on house arrest at her uncle's home in Rodeo, pending trial in Florida, only allowed to leave for court, to meet with attorneys, and for her son's medical needs.
She will be monitored with an electronic GPS device.
"We believe it is a just and appropriate decision that permits her to reunite with her children," defense attorney Charles Swift said.
Salman's attorneys note in so-called terrorist cases like this, bond is extremely tough to get.
"This is extraordinarily rare and a real statement on the weakness on the prosecution's case," defense attorney Linda Morena said.
Family members put up property as equity to secure the $500,000 bond. Salman's uncle Abdallah agreed to be her main supervisor.
"She's an innocent person," he said.
If Salman violates any of her bond conditions, he could lose his house. "From day one, I always feel she's an innocent person. And I know eventually when everything shows, she didn't do anything wrong," he said.
The next court hearing is set for March 9.