The Trump administration announced a halt to federal funding for the Los Angeles Homeless Services Authority (LAHSA), drawing protests from local leaders who warn that the decision endangers many lives. The administration cites alleged financial mismanagement as the reason for stopping the support.
Scott Turner, the housing secretary, stated that under President Trump’s guidance, the Department of Housing and Urban Development (HUD) aims to support agencies delivering results, rejecting “corrupt failure.” Turner criticized LAHSA for prioritizing self-interest over the needs of the public it serves.
HUD’s decision follows reports and investigations highlighting financial irregularities within LAHSA. Despite receiving substantial federal aid, the agency allegedly misallocated funds. Los Angeles, labeled the center of a “drug-fueled homelessness crisis” by HUD, had obtained more federal funding for homelessness than any other U.S. area.
This year, LAHSA’s federal funding amounts to $69 million, about 8% of its total budget, which is heavily supported by city and county finances. The decision to cut federal support raises concerns among local officials over the potential increase in homelessness.
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