A federal Clinton judge temporarily blocked the Trump administration from cutting off roughly $241 million in federal homelessness funds to the Los Angeles Homeless Services Authority (LAHSA) following a high-profile dispute over fraud allegations and financial accountability. U.S. District Judge David O. Carter ruled Thursday that HUD moved too abruptly, with no replacement ready to take over.
“LAHSA may be dysfunctional,” Carter wrote. “But thousands of unhoused individuals rely on these services.”
The fraudsters especially rely on it. The program is near-worthless and mostly feeds fraud.
The Story
In June, Secretary Scott Turner announced the immediate suspension of the Los Angeles Homeless Services Authority (LAHSA), the lead agency for Los Angeles’ homelessness response.
HUD has uncovered evidence of LAHSA’s repeated false statements and its irresponsible actions and failures, including its lack of financial management, internal controls, and safeguards against conflicts of interest, which pose a threat to the public, HUD’s mission, and the stewardship of taxpayer dollars.
The Los Angeles Continuum of Care, led by LAHSA, has received nearly $1 billion in taxpayer dollars over the last five years. Despite receiving more federal homelessness funding than any other jurisdiction in the nation, Los Angeles remains the epicenter of the nation’s drug-fueled homelessness crisis.
Following a HUD-initiated investigation, LAHSA’s clear pattern of fraud is being exposed, including:
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- In August 2023, LAHSA could not even determine whether it used funding to pay for empty hotel rooms, because it failed to record when individuals exited transitional motel housing;
- In November 2024, the LA County’s Auditor-Controller found that LAHSA misused government money by using it to pay for services provided under another government funders’ contract weeks before LAHSA received grant funds to cover the particular cost;
- During a 2025 assessment, LAHSA failed to provide documentation to verify the existence of nearly 2,300 housing sites for which it was responsible;
- LAHSA made false certifications and did not even have its own internal written conflict-of-interest policy until September 26, 2025, even though it certifies that it will comply with these requirements and will establish safeguards to prohibit conflict of interest;
- The agency’s former CEO resigned after she and LAHSA violated federal conflict-of-interest rules by committing more than $2 million in federal funds under LAHSA’s control to her husband’s employer.
Los Angeles’ failure to address the homelessness crisis is glaring. While its funding has increased 178% since HUD first mandated the Housing First policy in 2013:
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- Homelessness in LA has increased 100%,
- Free housing for the homeless in LA has increased 212%, and
- HUD Continuum of Care funding per homeless person in LA has increased by 39%.
The program doesn’t have to be held accountable, and federal taxpayers have to keep funding corruption in LA.
🚨 WOW! HUD Sec. Scott Turner just showed up to fraud-ridden Los Angeles to announce the Trump admin is CUTTING OFF funding to the Homeless Industrial NGO Complex
LAHSA, the city’s previous homeless organization, has LOST federal dollars 👏🏻
“They will not receive another CENT… pic.twitter.com/fFj3Sb3n9G
— QUANTUM GUARD ™️ (@QuantumGuard17) August 29, 2026