In a court filing, U.S. Assistant Attorneys Jennifer Williams and Eric Gibson said "it is in the interest of justice" to dismiss four bribery and money laundering charges against Fattah, after the appeals court overturned the convictions in August 2018.
The court said the jury had not been properly instructed on the meaning of "official acts" and ordered a re-trial for Fattah on those charges.
The Democrat is still serving a 10-year prison term for a 2015 conviction on charges including racketeering, bribery, conspiracy and fraud.
Federal authorities say Fattah schemed to disguise funds from donors and misspent federal grants and charity funds for his own personal use.
Fattah is set to be released in October 2025.