The Trump administration announced it is withdrawing federal funds from the Los Angeles Homeless Services Authority (LAHSA). This decision sparked backlash from local leaders concerned about the potential impact on the homeless population. Mayor Karen Bass expressed fears that the funding cut could endanger lives.
Scott Turner, housing secretary, criticized LAHSA, describing it as a “corrupt failure.” He stated that under President Trump’s leadership, the Department of Housing and Urban Development (HUD) would focus on results instead of supporting what he referred to as a “homeless industrial complex.” Turner indicated that taxpayer money should not sustain an organization prioritizing its self-interests over public service.
HUD officials highlighted various reports and investigations that uncovered misspending and a lack of proper financial oversight by LAHSA. Despite being the largest recipient of federal homelessness funding in the nation, Los Angeles remained central to the country’s ongoing “drug-fueled homelessness crisis.” Over the last five years, LAHSA received nearly $1 billion in federal funds.
This fiscal year, LAHSA is set to receive $69 million from the federal government, which represents about 8% of its total budget. Historically, the agency has heavily depended on funding from the city and county governments of Los Angeles.
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