The Trump administration is set to reduce federal funding for homeless assistance programs by nearly $400 million, specifically targeting a Los Angeles agency criticized for its poor performance.
A recent White House budget proposal pointed out that the Los Angeles Homeless Services Authority (LAHSA) has not been effective in achieving its goals of housing homeless individuals.
According to the proposal, “LAHSA has an abysmal track record of reducing street homelessness,” which is particularly concerning given that Los Angeles has the highest rate of homelessness in the U.S. An independent audit from March 2025 revealed that the agency failed to properly track significant amounts of federal and local funding.
The plan includes a cut of $393 million for homeless assistance and the elimination of the Continuum of Care program, which is financed by the U.S. Department of Housing and Urban Development.
The budget proposal suggests that nonprofits working with the homeless should concentrate on the most at-risk populations. “However, a national investigation has uncovered fraud and corruption within the current network of service providers,” it added.
Local lawmakers have expressed their dissatisfaction with LAHSA in recent years. For instance, City Council member Monica Rodriguez described the city’s relationship with the agency as a “merry-go-round from hell,” urging the city to sever ties with it.
Nithya Raman, who chairs the LA Council committee overseeing LAHSA and is a candidate for mayor from the Socialist Party, disagrees with leaving the agency. Instead, she has called for a review of how the city allocates its homeless spending. “We need to be able to establish who is responsible,” she stated.
LAHSA argues that losing this funding would impede its ability to help the homeless. The agency’s interim CEO, Geeta O’Neill, argued that cutting funding or destabilizing ongoing support programs would likely result in an increase in homelessness rather than a decrease. “If anything, maintaining our current approach requires more funding due to rising costs,” she added.
Despite Los Angeles spending over $1 billion annually on homelessness initiatives, it faces ongoing criticism for its handling of the crisis. Many have accused the city of mismanaging funds, which continues to stir public discontent.
Rodriguez remarked, “We’re pouring a significant amount of money into a system that wasn’t designed for success and no one is being held accountable for its shortcomings.”
The newspaper has reached out to Raman for further comments.
