A federal appeals court on Thursday ordered the Department of Housing and Urban Development to release federal funding that has already been allocated to homeless service organizations in Los Angeles but was not distributed. 

The court order was in response to the Trump administration's attempt to oversee how homeless service organizations in Los Angeles can seek millions of dollars in federal funding, according to the Los Angeles Times.

The Los Angles Homeless Services Authority was seeking up to $239 million on behalf of dozens of organizations, but HUD suspended LAHSA in June, citing a record of mismanagement, and directed the groups to apply directly through the federal government.

The U.S. 9th Circuit Court of Appeals on Thursday largely upheld a district court ruling in a 2-1 split, which restored LAHSA as the applicant for the organizations.

The court determined that HUD “chose to suspend LAHSA at a time when it would leave the Los Angeles region particularly vulnerable” with ill effects on “vulnerable populations, critical programs and ongoing services." 

“It is likely that its plan is unworkable and, at this late stage, extremely difficult if not virtually impossible to implement,” the decision added.

The new deadline for LAHSA to apply for HUD funding is Oct. 14. The original deadline was the end of August.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.