The Trump administration has suspended federal funding to the Los Angeles Homeless Services Authority (LAHSA) after a critical review revealed the agency could not account for nearly $37 million in taxpayer dollars. The Department of Housing and Urban Development (HUD), part of a fraud task force led by Vice President JD Vance, uncovered these discrepancies. Of the funds allocated to LAHSA, only about $14 million could be traced, with the rest unaccounted for.
HUD Secretary Scott Turner criticized LAHSA for its “record of fraud, failure, and flagrant mismanagement.” The federal action follows a lawsuit filed by the LA Alliance for Human Rights in 2020 demanding accountability from the agency. HUD’s decision to suspend funding comes amid ongoing scrutiny of LAHSA, which has received nearly $1 billion from the federal government since 2021, according to a report by Fox News Digital.
The suspension of funds is a significant move against one of the largest homelessness agencies in the country. LAHSA has faced criticism for its inability to verify the existence of nearly 2,300 housing sites and for poor record-keeping, which has prevented effective monitoring of contracts. In response, LAHSA stated that it is working to correct the issues and improve its financial systems.
Los Angeles Mayor Karen Bass expressed concern over the suspension, emphasizing that it threatens the progress made in reducing homelessness. Despite recent declines in homelessness figures, more than 72,000 people remain homeless in Los Angeles County.
The suspension of funds is part of a broader effort by the Trump administration to ensure accountability in federal funding for homelessness programs. The administration has faced legal challenges over its changes to funding criteria, as noted in a Los Angeles Times report, but remains committed to its oversight goals.
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