Jun 14, 2026
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Trump Admin Suspends $200M for LA Homeless Agency

The Trump administration has suspended nearly $200 million in federal funding for Los Angeles County’s main homelessness agency, citing alleged ‘wanton mismanagement of public funds.’ The move puts at risk critical services for the city’s large homeless population.

Investigation and Allegations

The U.S. Department of Housing and Urban Development (HUD) accused the Los Angeles Homeless Services Authority of fraud and misusing government money. The agency allegedly failed to record when people left their motel housing and could not provide documents to prove the existence of homes it was responsible for.

HUD Secretary Scott Turner stated, ‘Taxpayers will no longer bankroll an organization that puts its own self-interests ahead of the Americans it was created to serve.’ The agency has faced recent issues, including critical audits and the resignation of its head, who was criticized for signing contracts with a nonprofit tied to her husband.

Impact on Homeless Services

The suspension of federal funds could jeopardize the work the authority has done to fight homelessness, potentially putting thousands of formerly homeless people back on the street. The Los Angeles Homeless Services Authority received nearly $200 million in federal funds last year through the Continuum of Care program.

LA Mayor Karen Bass expressed concern that threatening the agency’s funding does nothing to house people, stating, ‘Ultimately, people will lose their lives.’ The Trump administration has been attempting to overhaul the way LA and other places address homelessness, prioritizing temporary shelters over permanent housing.


Original reporting: WTVQ (Lexington) — read the source article.

OBBM Network Editorial Staff

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Editorial team behind OBBM Network — independent, hyper-local journalism syndicated through HyperLocalLoop and OBBM Network TV.

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