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In a brief, unsigned order, it said the plaintiffs did not “refute the Government’s representation that it is unlikely to recover the grant funds once they are disbursed.”

"There is a lack of housing because homes are being hijacked - on the one hand tourist flats, and on the other hand all the empty flats belonging to vulture funds and the banks," he says.

In a decade, the loss in revenue could exceed the funds brought in by the tax.

“We are deeply disappointed by this ill-informed decision, which immediately affects critical programs supported by these funds,” Rebecca Wendt, the California deputy state librarian, said in a statement.

At home, there is discontent among some supporters over the lack of funds for reconstruction, while the new government has vowed to disarm the group.