Feds suspend LAHSA from receiving federal money, citing financial mismanagement
Key takeaways
- Depending on the outcome, funding could be restored or LAHSA could be permanently barred.
- “HUD cannot ignore LAHSA’s wanton mismanagement of public funds,” Hughes said in his letter. “Diverting dollars from worthy programs to LAHSA merely makes the homeless crisis worse.”
- Federal funding made up 7% of LAHSA’s annual budget this fiscal year, mostly paying for permanent housing subsidies through a HUD program known as the Continuum of Care.
People gather for a press conference at Los Angeles Homeless Services Authority Welcome Navigation Center on Monday, July 14, 2025 in Los Angeles, CA. (Luke Johnson / Los Angeles Times) By Andrew Khouri and David Zahniser June 11, 2026 2:17 PM PT 2 3 min Click here to listen to this article Share via Close extra sharing options Email Facebook X Linked In Threads Reddit Whats App Copy Link URL Copied! Print 0:00 0:00 1x This is read by an automated voice. Please report any issues or inconsistencies here.
The Trump Administration on Thursday suspended the embattled Los Angeles Homeless Services Authority from receiving federal funds, citing repeated financial mismanagement and lack of control over conflict of interest safeguards.
In a letter, Deputy HUD Secretary Andrew Hughes told LAHSA that the federal agency had reason to believe LAHSA may have violated federal law and federal funding would be suspended during an investigation by HUD’s inspector general.