Trump Administration Suspends Los Angeles Homeless Services Funding

The Trump administration’s attacks on the poor and unhoused continued last week after it announced that they cut federal funds from a Los Angeles homelessness agency. 

The New York Times reports that the Department of Housing and Urban Development (HUD) sent a letter to the Los Angeles Homeless Services Authority (LAHSA) on Thursday informing it that it will immediately suspend the agency’s funding and launch an investigation into its spending. HUD claims that even though LAHSA has received $1 billion in funding over the last five years, the agency has done little to address the rampant homelessness in Los Angeles. 

“Despite receiving more federal homelessness funding than any other jurisdiction in the nation, Los Angeles remains the epicenter of the nation’s drug-fueled homelessness crisis,” the federal agency said in a statement. 

“Under President Trump’s leadership, HUD will fund results, not corrupt failure or the homeless industrial complex,” Housing Secretary Scott Turner said in a statement. “Taxpayers will no longer bankroll an organization that puts its own self-interests ahead of the Americans it was created to serve.” 

I mean, as of now, my tax dollars are still funding an administration that’s putting its own self-interests instead of the Americans they were appointed to serve, so I don’t think Turner’s statement is entirely accurate. 

LAHSA released a statement calling the suspension of funding “a blatant attempt to pull yet more resources from Los Angeles” and claimed the decision could “put thousands of formerly homeless people back on the street.” 

“If HUD’s Inspector General actually conducts a fair review of LAHSA’s current and future practices, they will clearly see how our systems now allow us to clearly track the work and investments that have resulted in LA outperforming the nation by reducing homelessness over the last two years,” LAHSA said in its statement. 

LAHSA has been a source of controversy even among people who agree with its mission. CBS News reports that LAHSA has continually come under scrutiny in recent years for faulty accounting. A 2024 audit found that the agency couldn’t account for tens of millions of taxpayer dollars, with another court-ordered audit finding that LAHSA couldn’t account for $2.5 billion in taxpayer funds. 

Which, honestly, is not a good look. 

This is yet the latest difficulty facing LAHSA this year, as in April the agency announced it would have to lay off over 400 workers. So the pulled funding could not come at a worse time for the agency. 

Lindsey Horvath, a member of the Los Angeles County Board of Supervisors, who has been critical of LAHSA’s accounting, issued a statement disagreeing with HUD’s decision. “This stunt is for publicity, not for results,” said Horvath. “I have been calling for change and accountability at LAHSA, but if this administration desires accountability, too, they should work with L.A. County.” 

While yes, there clearly needs to be an overhaul at LAHSA, simply pulling funding does nothing but hurt the people the organization was designed to assist. HUD didn’t even provide a road map or steps for LAHSA to follow to restore funding. Homelessness is a very real problem in Los Angeles. I know. I’ve lived there and visit family frequently, so I’ve seen it firsthand. If the Trump administration were serious about addressing the issue, it would find a way to work with LA to get LAHSA back on track, not exacerbate the issue by pulling funding. 

SEE ALSO:

20 States Sue The Trump Admin To Stop Homeless Funding Cuts

How Vulnerability Surveys Keep Black People Homeless

How Criminalizing Homelessness Isn’t Helpful