A federal appeals court Friday suspended a November order by US District Judge Richard Leon requiring the Federal Emergency Management Agency to reinstate certain housing payments  to Hurricane Katrina victims. The US DC Circuit Court of Appeals suspended the order in response to FEMA's request to allow the agency to delay action on the shelter program at least until March when the appeals court will hear arguments in the case.

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. 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. Leon's order also required FEMA to explain to evacuees in plain English why they are no longer eligible for funding.