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LAHSA sues HUD over federal funding suspension

Updated 2 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-12 03:15 UTC → 2026-08-13 20:25 UTC · added removed

Following the June suspension of federal funding due to alleged fraud and mismanagement, the Los Angeles Homeless Services Authority (LAHSA) has filed a federal lawsuit to block the U.S. Department of Housing and Urban Development (HUD) from freezing approximately $240 million in grants. LAHSA argues the suspension threatens services for over 11,000 people in Los Angeles County and seeks a temporary restraining order. In response, HUD Secretary Scott Turner and HHS Secretary Robert F. Kennedy Jr. announced plans to maintain the suspension, with Turner stating, “The days of funding corrupt failure are over.” Turner cited the agency’s inability to verify 2,300 housing units and failures in tracking motel expenditures despite receiving nearly $1 billion in federal funds over five years. HUD has directed local service providers to apply for funds directly to the federal government to bypass LAHSA. Beyond financial mismanagement, the legal battle reflects a broader policy shift. LAHSA alleges the suspension is a pretext for the administration to move away from the ‘housing first’ model toward recovery-based transitional housing. On August 12, U.S. District Judge David O. Carter is reviewing issued a preliminary injunction blocking HUD from suspending LAHSA’s ability to manage federal homelessness funds, characterizing the case, with administration’s actions as “arbitrary and capricious.” The judge ordered HUD to restore LAHSA as the master applicant for funding while a review of potential ruling expected before the August 26 replacement agencies is conducted, with a deadline for regional grant applications. of October 13. During a press conference, Kennedy criticized the current system as a “homelessness industry” that perpetuates dependency, maintaining that funds will be withheld from programs that fail to move individuals into recovery.

Versions

  1. 2026-08-13 20:25 UTC LAHSA sues HUD over federal funding suspension
  2. 2026-08-12 03:15 UTC LAHSA sues HUD over federal funding suspension
  3. 2026-08-07 02:04 UTC LA homeless services authority takeover delayed

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