Trump Administration Threatens to Cut Homelessness Funding in Los Angeles

On Tuesday, the Trump administration reinforced its warning regarding potential cuts to Los Angeles’ homelessness agency, as the city grapples with a surge in homeless numbers over the past decade. The Los Angeles Homeless Services Authority (LAHSA), which has received nearly $1 billion in federal aid in the last five years, is under scrutiny.

During a press conference at the Los Angeles Dream Center, Housing and Urban Development Secretary Scott Turner, alongside Health and Human Services Secretary Robert F. Kennedy Jr., criticized LAHSA’s management. “The days of funding corrupt failures are over,” Turner remarked, indicating a shift in federal strategy away from conventional homeless aid programs.

LAHSA serves as the primary organization addressing homelessness in the city and county, with an annual budget estimated at $845 million.

Turner noted that Los Angeles has secured the highest federal homelessness funding in the country over the past five years, nearly reaching $1 billion. Yet, the homeless crisis persists, with numbers rising alongside federal spending.

“In the same decade that the number of homeless people in LA doubled, HUD funding to LA almost tripled,” Turner stated. He emphasized the need for a new approach, pointing out that existing methods are not yielding results.

Statistics from HUD reveal that federal funding for homelessness in Los Angeles has surged by 178% since 2013, while the homeless population has similarly increased by 100%.

This year, around 45,194 individuals are homeless in Los Angeles, with approximately 29,115 lacking shelter.

Turner cited several instances of systemic failures, mentioning that LAHSA couldn’t verify the existence of 2,300 housing units it oversees and could not effectively track expenditure on vacant hotel rooms. He also referred to a federal investigation related to a conflict of interest involving significant contributions to a former CEO of LAHSA.

“The numbers don’t add up,” he declared. “The very organization with billions dedicated to ending homelessness shamelessly squandered it on corruption and mismanagement.”

Turner pointed out a federal fraud case involving a contractor of LAHSA, Abundant Blessings, whose executive director was implicated in a $23 million fraud scheme.

He criticized PATH (People Assisting the Homeless), alleging that despite $2.5 million in funding since 2021 for converting a former hotel into homeless housing, the site remains unoccupied.

Turner also highlighted drug paraphernalia found in bags that were supposedly being distributed to homeless individuals. “This is not compassion,” he stated.

He and Kennedy then suggested the Dream Center as a model for addressing homelessness. Before the press conference, they toured the facility, which houses hundreds who engage in recovery programs.

Kennedy stated that about 600 people live at the Dream Center for approximately $7,500 per person each year, contrasting that with Los Angeles County’s estimated $185,000 annual cost per homeless individual.

“They’re doing better than us, and we need to start recognizing that,” Kennedy said.

Turner expressed interest in integrating faith-based organizations back into the federal homelessness framework and in funding healthcare providers that combine housing with mental health and addiction support.

“It’s not just housing. It’s not housing first,” he noted. “It’s about continuing to care for men, women, children, and families.”

Warning LAHSA, Turner said, “Unless they have a dollar left, American taxpayers will not receive a dime.” LAHSA’s federal grant activities were suspended in June following revelations of problematic management and conflicts of interest.

However, efforts to suspend LAHSA’s funding have led to legal challenges. As the city anticipates the next round of federal funding, U.S. District Judge David O. Carter is evaluating LAHSA’s request to halt the suspension.

A ruling from Carter is expected soon.

Regardless of the outcome, Turner clarified that the administration is focused on redirecting federal funds away from what it sees as a failing system and towards organizations that can demonstrate real results. “We’re interested in the actual results,” he concluded, stressing the goal of helping individuals find stability and overcome challenges.