The CDC's residential eviction ban will remain in place after a federal appeals court refused to declare it's unlawful.
The moratorium is set to expire on June 30. It covers renters whose incomes were affected by the pandemic.
This case involved a group of landlords and the Alabama Association of Realtors, who challenged the moratorium and initially won a ruling last month. At the time, Judge Dabney Friedrich said the CDC had overstepped its authority and struck down the moratorium.
However, the judge agreed to hold her ruling from taking immediate effect to allow the Biden administration to appeal.
The plaintiffs then asked the D.C. Circuit Court of Appeals to lift the judge's stay, and allow her ruling on the moratorium to take effect.
A three-judge panel on Wednesday issued an order that denied the request, and leaves Judge Friedrich's pause on her ruling in place.
Landlord groups have filed multiple legal challenges, arguing they cannot survive without rent.
According to one analysis, some 7 million U.S. renters owe more than $40 billion in rent and other fees.
Congress approved $50 billion in rent relief, but that money has been slow to go out.
Simon Kaufman and Alex Livingston contributed to this report.
