Federal homelessness policy shifts amid L.A. agency funding transition

The Los Angeles Homeless Services Authority (LAHSA) has announced it will stop managing approximately $240 million in annual federal homelessness funding. This decision follows scrutiny from the Trump administration and concerns regarding accountability and alleged theft of taxpayer funds. U.S. District Judge David O. Carter is now tasked with determining a successor to manage these funds, which are scheduled for award in December.

Los Angeles County has applied for the role through its new homelessness department, promising increased transparency. The City of Los Angeles has also expressed interest in assuming some of LAHSA’s duties. Judge Carter emphasized that any transition must be gradual to prevent the displacement of individuals currently receiving housing and services.

Nationally, the shift in federal policy away from the ‘Housing First’ model toward a ‘Treatment First’ approach is creating upheaval for service providers. Organizations across the United States that rely on federal subsidies are adjusting to new requirements that favor short-term transitional housing. Advocates warn that these changes may threaten vulnerable populations by reducing access to permanent, government-subsidized apartments.