The Trump administration says it will completely cut off federal funding for Los Angeles homeless services, escalating its dispute with the Los Angeles Homeless Services Authority, or LAHSA. The announcement was made Tuesday at a joint news conference in Echo Park by Health and Human Services Secretary Robert F. Kennedy Jr. and Housing and Urban Development Secretary Scott Turner.
The two officials said funding would not resume unless LAHSA demonstrates “complete transparency” and “complete accountability.” They also said federal tax dollars will go to organizations that produce “real results,” including more support for faith-based groups such as the operator of the Echo Park Dream Center.
Kennedy said the goal is not simply to manage homelessness, but to help people leave the streets and return to productive lives and their communities. The move follows months of warnings from the administration and is not a new policy.
HUD already suspended federal funding for LAHSA in June, accusing the agency of mismanaging hundreds of millions of tax dollars over several years. LAHSA responded by suing HUD, and the dispute is now before U.S. District Judge David O. Carter in a case involving up to $240 million in HUD funds.
LAHSA said in a statement that audits have never found evidence of misuse or corruption. The agency also said it is actively cooperating with the federal government’s fraud investigation.
