A federal judge has put a temporary hold on the Trump administration’s plan to remove the Los Angeles Homeless Services Authority (LAHSA) from the city’s federal homeless assistance framework.
This decision ensures that about $241 million in federal funding will continue to support the area and allows LAHSA, the main agency for homeless services in both Los Angeles city and county, to remain operational for the 2026 funding cycle. Back in June, the Department of Housing and Urban Development (HUD) had indicated it would block this funding and informed LAHSA it would cease to receive federal grants.
Judge David O. Carter voiced concerns that abruptly dismantling LAHSA could put at risk housing and services for over 11,000 individuals who depend on this federally funded initiative.
Furthermore, he stated that HUD’s decision to halt the agency’s operations without allowing adequate time for Los Angeles to transition to an alternative system was improper.
However, it’s important to note that Carter did not dismiss the allegations of financial mismanagement and oversight issues that led to the federal scrutiny in the first place. He noted LAHSA’s long-standing issues and left the door open for further federal investigations into possible fraud or misappropriation of taxpayer money.
But this peace might be short-lived. The issue returned to the courts in October, with Carter directing Los Angeles officials to promptly begin seeking a new agency to take over LAHSA’s responsibilities, as this new entity will be critical for the federal government in 2027.
