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US District Judge Nina Gershon handed them a legal victory by issuing a preliminary injunction against the government. Judge Gershon said it's in the public's interest for the organization to continue receiving federal funding.
ACORN's lawsuit was filed in federal court in Brooklyn and sought reinstatement of the funds that were cut off as the result of a punitive law that passed and took effect October 1.
ACORN claimed in its lawsuit that named the US federal government, the secretary of Housing and Urban Development, the director of the Office of Management and Budget and the secretary of the Treasury as defendants. that Congress' decision to cut off its funding was unconstitutional because it punitively targeted an individual organization.
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Bill Quigley, the legal director of the Center for Constitutional Rights, which brought the lawsuit on behalf of ACORN and two affiliates, said the decision sends a sharp message to Congress that it can't single out an individual or organization without due process.
"It's a resounding victory for ACORN," he said. "I'd be surprised if the government decides to appeal."
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ACORN, or the Association of Community Organizations for Reform Now, is an organization that advocates for low-income and minority homebuyers and residents in communities served by its offices around the country.
Right wing critics and media pundits say it has violated the tax-exempt status of some of its affiliates by engaging in partisan political activities and have relentlessly attacked the organization.
ACORN has been dogged by right wing allegations of voter-registration fraud and embezzlement and been used by the Republicans to portray Democrats as corrupt.
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Quigley said millions of dollars in funds should begin to flow again to ACORN next week. Judge Gershon said the "public will not suffer harm by allowing the plaintiffs to continue work on contracts duly awarded by federal agencies."
Justice Department spokeswoman Beverley Lumpkin said the agency was reviewing the decision and declined to comment further.