LAHSA Sues Trump Administration to Restore $241 Million in HUD Funds for 11,000 People
Updated
Updated · Los Angeles Times · Jun 29
LAHSA Sues Trump Administration to Restore $241 Million in HUD Funds for 11,000 People
3 articles · Updated · Los Angeles Times · Jun 29
Summary
LAHSA asked a federal court for a temporary restraining order after HUD moved to suspend hundreds of millions of dollars in homelessness funding, a cutoff the agency says would endanger housing or services for more than 11,000 people, including 1,900 children.
HUD suspended LAHSA on June 11, alleging financial mismanagement, false statements, fraud risks and weak conflict-of-interest safeguards; the department said its inspector general has opened an investigation and funding could be restored or permanently barred.
In its 46-page lawsuit, LAHSA says HUD has produced no investigative findings and instead relied on old news reports, public comments and audits whose recommendations were already addressed.
The filing argues the administration is using the suspension to undermine the Continuum of Care system that channels most federal homelessness aid across 85 Los Angeles County cities.
The fight reaches beyond LAHSA's finances because the agency secured $220 million in 2024, runs the countywide homeless data system used by 300-plus agencies, and says losing funds could reverse recent declines in homelessness.
Is L.A.'s homelessness funding frozen over mismanagement or a clash on national policy?
What happens when federal oversight clashes with local control over a city's homelessness crisis?
$69 Million at Stake: LA Faces Federal Funding Freeze Amid HUD-LAHSA Legal Battle Over Homelessness Services
Overview
Los Angeles is facing a pressing crisis that directly impacts its homelessness services, raising serious concerns for both the unhoused community and the organizations that support them. Local leaders, like Supervisor Kathryn Barger, have emphasized the urgent need to protect those most at risk, stating that her immediate priority is safeguarding unhoused individuals and the frontline organizations helping them. Barger also stressed that vulnerable groups should not bear the consequences of management failures, highlighting significant operational or administrative challenges. This situation underscores the high stakes and urgency surrounding the city's efforts to support its most vulnerable residents.