Dive Brief:
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Federal funding for the Los Angeles Homeless Services Authority was cut off Thursday by the U.S. Department of Housing and Urban Development as it launched an investigation into what it called “repeated false statements” and “irresponsible actions and failures.”
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The pause in funding could impact the more than $220 million in Continuum of Care grants that LAHSA received in 2024 for the fiscal 2025-2026 operating year, and could lead to a permanent debarment of the agency pending the investigation’s outcome, according to HUD.
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The investigation follows several scandal-plagued years for LAHSA, including a repeated failure to meet outreach goals and alleged conflicts of interest that led to a major leadership changeover last year.
Dive Insight:
Los Angeles County also pulled support from LAHSA last year, launching its own homeless services agency with the stated aim of “increased accountability.” LAHSA in April announced it would lay off 284 employees, largely due to the county’s decision to redirect its funding.
In a statement following HUD’s Thursday announcement, Los Angeles Mayor Karen Bass acknowledged shared concerns regarding LAHSA, but she urged HUD to work with the city to continue funding for homeless services, nonprofit news agency CalMatters reported.
The investigation also comes amid a Trump administration push to eliminate Continuum of Care funding altogether and shift away from a “housing-first” approach to addressing homelessness.
“Under President Trump’s leadership, HUD will fund results, not corrupt failure or the homeless industrial complex,” HUD Secretary Scott Turner said in a news release. “Year after year, hundreds of millions of taxpayer dollars were funneled to LAHSA with little accountability. Meanwhile, homelessness skyrocketed. Taxpayers will no longer bankroll an organization that puts its own self-interests ahead of the Americans it was created to serve.”
Los Angeles has among the largest homeless populations in the U.S., but it has recorded some progress with declines in homelessness in recent years.
