A federal judge has temporarily blocked the Trump administration from cutting approximately $240 million in federal funds from the Los Angeles Homeless Services Authority (LAHSA), the region's primary agency for addressing homelessness. The ruling allows the funds to continue flowing to Los Angeles for the 2026 funding cycle.
In June, the Department of Housing and Urban Development (HUD) had notified LAHSA that it was suspending the agency from receiving federal grants. The agency's suspension was initiated due to ongoing investigations into alleged fraud, mismanagement, and waste of federal funds.
Judge David O. Carter's decision came after he acknowledged concerns that an abrupt cessation of funding could imperil housing and services for over 11,000 individuals who rely on federally funded programs. He ruled that HUD acted improperly by suspending the agency without providing adequate time for Los Angeles to transition to an alternative system.
However, the judge did not absolve LAHSA of the financial mismanagement and oversight failures that led to the federal investigation. Carter recognized the agency's history of problems and indicated that federal investigations into potential fraud and misuse of taxpayer money could proceed. The reprieve granted to LAHSA may be temporary, as Carter has ordered Los Angeles officials to begin seeking alternative organizations to replace LAHSA in its key federal roles for the 2027 funding cycle. The matter is scheduled to return to his courtroom in October.
LAHSA serves both the city and county of Los Angeles, managing federal grants aimed at combating homelessness in the region.