Feds bar LAHSA from federal money, citing financial mismanagement

Key Points:

• The Trump administration suspended federal funding to the Los Angeles Homeless Services Authority (LAHSA) due to repeated financial mismanagement and inadequate conflict of interest safeguards, pending an investigation by HUD’s inspector general.
• LAHSA, which receives about 8% of its budget from federal funds mostly for permanent housing subsidies, warned that the suspension could force thousands of formerly homeless people back onto the streets.
• Local officials and homelessness advocates expressed mixed reactions, with some condemning HUD’s action as politically motivated chaos, while others welcomed the federal scrutiny as necessary for accountability.
• The county has already begun withdrawing most of its funding from LAHSA due to past audits revealing financial and oversight deficiencies, and the city is considering similar moves.
• Despite these challenges, LAHSA highlighted recent reductions in homelessness in Los Angeles over the past two years and expressed confidence that corrective measures will restore trust and funding.