HUD Withdraws Federal Funding from Los Angeles Homeless Services Authority Amid Criticism

What's happening

The U.S. Department of Housing and Urban Development (HUD) has officially notified the Los Angeles Homeless Services Authority (LAHSA) that it will no longer receive federal funding. This marks a significant development for an agency that has long been responsible for coordinating homeless services across Los Angeles County but has faced increasing scrutiny over its management and effectiveness. The decision reflects growing frustration with LAHSA's inability to substantially reduce homelessness despite receiving substantial public funds over many years.

LAHSA was created in 1993 as a joint powers agency governed by both the City of Los Angeles and Los Angeles County. It gained prominence after the passage of Measure H in 2017, a countywide tax increase designed to raise funds specifically for homeless services. In 2024, Measure H was replaced by Measure A, which further increased funding through additional taxes. Despite these financial boosts, recent counts estimate the homeless population in Los Angeles County remains near 72,000, highlighting the persistent challenges in addressing this crisis.

Criticism of LAHSA has centered on allegations of mismanagement and inefficiency. Reports have surfaced of financial irregularities, including a Department of Justice announcement about the arrest of a South Los Angeles charity executive accused of embezzling $23 million intended for homelessness programs. Observers argue that LAHSA’s structure, which funds over 100 nonprofit partner agencies, has contributed to a lack of accountability and transparency, potentially allowing funds to be misused without producing meaningful results in reducing homelessness.

In response to these concerns, County Supervisor Lindsey Horvath has spearheaded efforts to shift county funding away from LAHSA toward a new system under direct county control. This move reflects a broader dissatisfaction with LAHSA’s performance, even among local political leaders who typically support the agency. Horvath’s initiative aims to create a more streamlined and accountable approach to distributing homeless services funding, seeking to improve outcomes for the region’s vulnerable populations.

What's at stake

The withdrawal of federal funding from LAHSA is expected to have immediate and significant consequences. Already, the agency has announced layoffs and plans for a major restructuring that will narrow its operational focus. The loss of both federal and county funds places LAHSA in a precarious position as it attempts to maintain essential services while adapting to a reduced budget. Meanwhile, the Los Angeles City Council is actively considering its options regarding future support and oversight of homeless services.

Supporters of LAHSA caution that cutting funding could worsen conditions for people experiencing homelessness, arguing that the agency operates within a complex system that requires sustained investment and coordination. They emphasize that homelessness is a multifaceted issue involving housing availability, mental health, and economic factors, which cannot be resolved solely through funding adjustments. Nonetheless, the agency has not publicly responded to inquiries about the funding withdrawal or its plans moving forward.

This development comes amid heightened attention to homelessness in Los Angeles, a city that has struggled for years to effectively address the crisis despite significant public and private investment. Recent audits and media reports have highlighted systemic flaws in the region’s homeless services, raising questions about how funds are managed and the impact of current strategies. HUD’s decision underscores the federal government’s increasing willingness to intervene when local agencies fail to meet expectations.

Looking ahead, the situation remains fluid as stakeholders debate the best path forward. The county’s new approach to homeless services funding will be closely watched to assess whether it can deliver improved results. LAHSA’s restructuring efforts and potential partnerships with other agencies will also be critical in determining how services are maintained during this transition. The ongoing challenge will be balancing accountability with the urgent need to provide support for tens of thousands of people experiencing homelessness in Los Angeles.

What happens next will depend largely on the actions of local government officials and the effectiveness of new funding and management models. The coming months will likely involve negotiations over budget allocations, program priorities, and oversight mechanisms. Observers will be paying close attention to whether these changes lead to measurable progress in reducing homelessness or if further adjustments will be necessary. The stakes remain high for the many individuals and families relying on these services for stability and support.

Why it matters

HUD's withdrawal of federal funding signals a loss of confidence in LAHSA's ability to manage homelessness programs effectively. LAHSA has struggled to reduce the homeless population despite receiving substantial funding through Measures H and A. County leadership is shifting funding control away from LAHSA to improve accountability and service delivery.

The funding cuts have forced LAHSA to implement layoffs and restructure its operations. Reducing funding risks worsening conditions for homeless individuals who depend on these services.

Key facts & context

HUD has formally informed LAHSA that it will no longer provide federal funding to the agency. LAHSA was established in 1993 as a joint powers agency between the City and County of Los Angeles. Measure H, passed in 2017, and Measure A, passed in 2024, increased tax revenues dedicated to homeless services in Los Angeles County.

The homeless population in Los Angeles County remains around 72,000 despite increased funding efforts. A Department of Justice press release detailed the arrest of a charity executive accused of embezzling $23 million in homelessness funds. LAHSA funds over 100 nonprofit partner agencies, raising concerns about oversight and transparency.

County Supervisor Lindsey Horvath has led efforts to redirect county funding away from LAHSA to a new county-controlled system. Following the loss of county funding, LAHSA announced layoffs and plans for a major restructuring. The Los Angeles City Council is currently reviewing options for future homeless services funding and oversight.

Critics argue that LAHSA’s structure has incentivized inefficiency and failed to achieve meaningful reductions in homelessness. Supporters warn that cutting funding could exacerbate the homelessness crisis by reducing available services. Recent audits and media reports have highlighted systemic issues within Los Angeles’s homeless services programs.

Timeline & key developments

2026-06-11: HUD Withdraws Funding from Los Angeles Homeless Services Authority. Additional reporting on this topic is available in our broader archive and will continue to shape this timeline as new developments emerge.

Primary sources

• hud.gov document
• file.lacounty.gov PDF
• file.lacounty.gov PDF
• homeless.lacounty.gov document

Further reading & references

• (Additional background links will appear here as we cover this topic.)