The U.S. 9th Circuit Court of Appeals has rejected the Trump administration’s effort to prevent the Los Angeles Homeless Services Authority from applying for federal homeless-services funding on behalf of dozens of local organizations. In a 2-1 ruling, the court largely upheld District Court Judge David O. Carter’s order restoring LAHSA as the applicant for $239 million in HUD funding for the 2026-27 cycle. The decision also requires the Department of Housing and Urban Development (HUD), the U.S. agency overseeing housing programs, to release previously approved grants that had not been formally distributed, leaving about a dozen Los Angeles organizations without reimbursement for months. HUD suspended LAHSA in June, citing mismanagement, and directed organizations to apply directly for funding. The appeals court found that the department acted when Los Angeles was particularly vulnerable and said its replacement plan was likely unworkable at that stage. LAHSA must now meet a new Oct. 14 application deadline. The order also restores LAHSA’s operation of the homeless database, housing-matching system and annual homeless count, although the arrangement is temporary. Los Angeles County has applied to assume those functions after diverting more than $300 million in homeless funds from LAHSA to its Department of Homeless Services and Housing last year. The ruling was signed by Jacqueline H. Nguyen and Roopali H. Desai, while Trump appointee Ryan D. Nelso dissented. LAHSA officials welcomed the decision, but Jewish Family Service LA said its Hope Transitional Shelter still faces a critical funding crisis because $300,000 in promised government funding, half its budget, has been unpaid since April 1.