Republicans don't have the right to "commandeer" a convention center, the court ruled, after the event was shut down over the pandemic.
"We were opening too quickly, too fast," Mayor Sylvester Turner said.
TSA agents have been among the federal employees forced to work without pay during the shutdown.
The group behind the lawsuit has accused the Freed-Montrose Neighborhood branch of being recklessly entangled in “LGBT doctrine.”
Houston Mayor Sylvester Turner told reporters “You cannot engage in sexual activities with any inanimate objects at the business.”
Authorities in Texas could not agree on whether an evacuation would claim or save lives.
Houston hasn't elected a Republican mayor in more than 30 years.