The Trump administration announced the suspension of federal funding for the Los Angeles Homeless Services Authority (LAHSA), sparking strong reactions from local officials who fear the decision could lead to more people becoming homeless. Mayor Karen Bass expressed her concern by stating, “people will lose their lives.”
Scott Turner, the housing secretary, described LAHSA’s efforts as a “corrupt failure” and emphasized that the government would only support organizations that deliver results. Turner declared, “Taxpayers will no longer bankroll an organization that puts its own self-interests ahead of the Americans it was created to serve.”
The U.S. Department of Housing and Urban Development (HUD) outlined its decision in a letter, highlighting reports and investigations alleging that LAHSA had mismanaged millions of dollars and failed to properly account for expenses. Los Angeles, which received more federal homelessness funding than any other area in the U.S., remains at the center of the nation’s “drug-fueled homelessness crisis,” HUD officials remarked.
Currently, LAHSA receives $69 million from the federal government, accounting for 8 percent of its overall budget for this fiscal year ending June 30. Historically, the agency has depended more heavily on funding from the city and county governments of Los Angeles.