The development is the second major setback for Trump in emoluments litigation in recent weeks. Last month, the New York-based 2nd Circuit revived a similar lawsuit that had been dismissed by a federal district judge in Manhattan. That suit was brought by restaurant owners and hospitality industry workers, as well as a watchdog group.

Another federal appeals court, the D.C. Circuit, is considering a bid by Trump to block a separate emoluments suit brought by Democratic senators and House members that a district judge in Washington has ruled should proceed to depositions and evidence gathering.

The 4th Circuit panel that previously ruled for Trump in the Washington and Maryland case consisted entirely of Republican appointees. Lawyers pressing the case were openly chagrined when the assignment of judges was revealed just prior to an oral argument session in March.

The officials who launched the suit welcomed the news that the appeals court was taking up the case anew.

“Today’s decision by the Fourth Circuit granting the District of Columbia and Maryland a rehearing in our anti-corruption case against President Trump is significant,” Washington Attorney General Karl Racine and Maryland Attorney General Brian Frosh said in a joint statement. “We look forward to arguing our case before the full panel to stop President Trump from violating the Constitution and profiting from the presidency.”

The plaintiffs could find more traction for their position at the en banc session in December. Democratic appointees outnumber Republican appointees on the court’s active bench 8-6. There is also one judge who was recess-appointed by President Bill Clinton and renominated by President George W. Bush.

The order setting the case for rehearing did not provide any rationale for the move but indicated that a majority of the appeals court’s active judges voted to rehear the case.

Trump celebrated the panel's original ruling in July as a victory against a wave of meritless litigation over his business interests, which he seemed to acknowledge were suffering in the wake of his election.

“Word just out that I won a big part of the Deep State and Democrat induced Witch Hunt,” Trump tweeted at the time. “Unanimous decision in my favor from The United States Court of Appeals For The Fourth Circuit on the ridiculous Emoluments Case. I don’t make money, but lose a fortune for the honor of .... serving and doing a great job as your President (including accepting Zero salary!)”

A spokesperson for the Justice Department declined to comment on Tuesday. A spokesperson for the White House did not immediately respond to a request for comment.