Dive Brief:
- Homelessness increased in Los Angeles County by 1.2% and in the city of Los Angeles by 3.4% in 2026 after two consecutive years of declines, a July 24 Los Angeles Homeless Services Authority report found.
- Unsheltered homelessness increased in both municipalities, rising by 3.3% in the county and nearly 8% in the city.
- Agencies and officials specializing in homelessness pointed to reductions in state and federal funding for homeless services last year as the primary cause for the increases. Los Angeles Mayor Karen Bass said in a news release the rise was expected and blamed a new policy and funding landscape for pushing “more people onto the streets.”
Dive Insight:
A loss of funding and resources for time-limited rental subsidies, also known as rapid rehousing, was the largest contributor to the uptick in homelessness, according to the LAHSA report.
The low-barrier, short-term rental housing subsidy program provided rental assistance for up to 24 months. Funding reductions forced a pause on the program, reducing the number of people it housed from 10,308 in 2024 to 6,590 last year, according to LAHSA.
“This year’s count confirms a fundamental truth: access to permanent housing ends homelessness,” Gita O’Neill, interim CEO of LAHSA, said in a news release. “When our unhoused neighbors lost access to rental subsidies, the system slowed, there was less upward movement in interim housing, and progress stalled.”
California last year also significantly slashed funding available through the state’s Homeless Housing, Assistance and Prevention Program, despite an outcry from local government leaders, who warned that progress made on homelessness could be reversed. The state has since revamped the HHAP program and restored $900 million for it in its latest budget.
Los Angeles is in the midst of a struggle over how to take a unified approach to its services for the homeless. The U.S. Department of Housing and Urban Development in June suspended federal funding for LAHSA and launched an investigation into what it called “irresponsible actions and failures.” LAHSA is suing HUD over the decision.
Los Angeles County last year yanked its support for LAHSA and launched its own agency. Bass recently hinted at plans to launch a new services provider for those experiencing homelessness in the city.
“The money wasn't tracked, providers went unpaid, and public trust eroded,” Bass said July 23 in reference to LAHSA. “I'm not going to defend a broken system. The City must build something better — results-driven, transparent, and centered around the people we're trying to help, not the bureaucracy.”
