Key facts
- The Trump administration has suspended federal funding to the Los Angeles Homeless Services Authority (LAHSA).
- The U.S. Department of Housing and Urban Development (HUD) cited allegations of fraud and mismanagement of public funds by LAHSA.
- Nearly $200 million in federal funds is at risk for LA area service providers.
- LAHSA is suspended from federal funding competitions until HUD's Office of Inspector General completes its investigation.
- LA Mayor Karen Bass stated that threatening funding does not help house people and could lead to loss of life.
The Trump administration has suspended federal funding for the Los Angeles Homeless Services Authority (LAHSA), citing allegations of "wanton mismanagement of public funds" and failure to decrease homelessness. This action jeopardizes nearly $200 million that service providers rely on to assist California's largest homeless population.
In a letter to LAHSA, the U.S. Department of Housing and Urban Development (HUD) accused the agency of fraud, including failing to properly record when individuals left housing, misusing government money, and an inability to document the existence of homes it was responsible for. HUD Secretary Scott Turner stated that taxpayers would no longer fund an organization prioritizing self-interest over the people it serves.
LAHSA, a joint city-county agency, is suspended from participating in federal funding competitions until HUD's Office of Inspector General concludes its investigation. LAHSA stated that local oversight actions have already resulted in reforms and that their systems now allow for clear tracking of work and investments that have reduced homelessness.
LA Mayor Karen Bass expressed grave concerns about LAHSA and zero tolerance for mismanagement, but stated that threatening federal funds does nothing to house people and jeopardizes progress. She urged HUD to work with the city to provide necessary funding. LA county supervisor Lindsey Horvath called the administration's choice for publicity, not results, and urged collaboration. City councilor Nithya Raman expressed concern about the impact on housing stability and jeopardizing future efforts.