A federal appeals court in New York City has thrown out a decision that barred Congress from withholding funds from the activist group ACORN.
The ruling Friday reverses a decision by a district court. That judge found Congress had violated ACORN's rights by punishing it without a trial.
ACORN describes itself as an advocate for low-income and minority home buyers and residents.
Critics say the group has engaged in voter registration fraud and embezzlement. They say it has violated the tax-exempt status of some of its affiliates by engaging in partisan political activities.
ACORN's full name is the Association of Community Organizations for Reform Now.