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Trump administration suspends funding for Los Angeles homeless agency amid fraud probe

HUD said LAHSA’s federal money will be frozen during an inspector general review after citing repeated financial mismanagement and weak conflict safeguards.

  • On Thursday, the Trump Administration suspended federal funding to the Los Angeles Homeless Services Authority, citing repeated financial mismanagement. Deputy HUD Secretary Andrew Hughes stated, "HUD cannot ignore LAHSA's wanton mismanagement of public funds."
  • An investigation by the Inspector General into potential violations of federal law triggered the funding suspension. Depending on the outcome, the agency faces either funding restoration or a permanent ban.
  • LAHSA officials claimed the action "could put thousands of formerly homeless people back on the street," asserting that a fair Inspector General review would reveal improved investment tracking systems.
  • Los Angeles County Supervisor Kathryn Barger called the decision "deeply concerning" but "consistent with longstanding issues" at LAHSA. Federal funding through the Continuum of Care represents 7% of the agency's annual budget.
  • Regional politicians and nonprofit groups promised pushback, with City Council President Marqueece Harris-Dawson and Alliance for Human Rights attorney Elizabeth Mitchell warning the suspension places the agency in a "difficult situation.
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Just the News broke the news in Washington, United States on Thursday, June 11, 2026.
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