Trump Administration Cuts Off Funding to ‘Fraud-Filled’ L.A. Homelessness Agency

The U.S. Department of Housing and Urban Development (HUD) announced it would cease funding to the Los Angeles Homeless Services Authority (LAHSA), citing accusations of fraud and financial mismanagement. HUD stated that LAHSA has made "repeated false statements and its irresponsible actions and failures" and demonstrated a lack of financial safeguards, despite receiving approximately $1 billion in government funding over the past five years. HUD Secretary Scott Turner criticized the agency for a lack of accountability and its role in the rise of homelessness in Los Angeles. This decision follows an investigation opened by HUD's inspector general on the same day. HUD is immediately suspending LAHSA, with permanent debarment being a potential outcome pending the investigation's results, which have uncovered various problems in 2023, 2024, and 2025. LAHSA, established by Los Angeles city and county, manages federal, state, and local funding for shelter and services through a network of about 100 nonprofits. The agency recently underwent a restructuring, including job reductions and a shift in focus to serving the city of Los Angeles, after LA County established its own homeless services department. LAHSA had also engaged KPMG to assist with a financial reassessment.