The Trump administration has decided to stop federal funding to the Los Angeles Homeless Services Authority (LAHSA). This action has sparked concern among local leaders who believe it might lead to more people living on the streets.
The U.S. Department of Housing and Urban Development (HUD) announced this decision in a letter. Over the past five years, LAHSA received almost $1 billion from the federal government. According to housing secretary Scott Turner, the agency mismanaged its funds and failed to show accountability.
“Under President Trump’s leadership, HUD will fund results, not corrupt failure or the homeless industrial complex,” Scott Turner stated. He emphasized that taxpayer money should not support organizations prioritizing their interests above public service.
Reports have shown that LAHSA misused millions of dollars. Despite receiving more federal funding than any other area in the country, Los Angeles continues to struggle with homelessness, driven by drug issues, HUD officials noted.
This fiscal year, LAHSA has been allocated $69 million in federal funds, about 8% of its total budget. The agency primarily relies on funding from Los Angeles city and county governments.
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