US District Judge Richard J. Leon ruled in Washington, DC, Wednesday that the Federal Emergency Management Agency (FEMA) must reinstate certain housing payments for victims of Hurricane Katrina. Leon granted the plaintiff's motion for a preliminary injunction against the payments stoppage, maintaining that FEMA had failed to provide evacuees with adequate explanations for their denials of housing assistance and their means of appeal under the Stafford Disaster Relief and Emergency Assistance Act. The Association of Community Organizations for Reform Now (ACORN)  filed the lawsuit on behalf of displaced hurricane evacuees alleging violations of their due process rights.

FEMA responded Wednesday by defending its policies and saying it will consult with the US Department of Homeland Security and US Department of Justice to determine a formal response to the district court's ruling. FEMA still faces several other suits relating to its termination or withdrawal or housing benefits to Katrina victims.