A federal judge is set to decide the fate of $240 million in homeless services funding for Los Angeles, as the Trump administration seeks to block the Los Angeles Homeless Services Authority from applying for the money. The dispute has escalated into a legal fight over whether LAHSA can remain eligible for the federal grants.
The funding supports homeless service providers across Los Angeles County, which rely on the money to deliver shelter, housing and social services to about 11,000 unhoused people. The conflict began in June, when the U.S. Department of Housing and Urban Development suspended LAHSA’s grant-related activities over concerns about financial management and oversight.
At an Aug. 6 hearing, U.S. District Judge David O. Carter acknowledged LAHSA’s past management problems but said he wanted to prevent a situation in which 11,000 homeless people are suddenly left out on the street. He also said he would look into whether Los Angeles is being politically punished.
Federal officials said they cannot keep funding what they described as a failed agency, while LAHSA argued that the Trump administration’s move was a politically motivated surprise action. The court is now considering whether LAHSA may continue to apply for the grants, or whether another agency should take over that role.
