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The Trump administration is scrutinizing federal homelessness funding in Los Angeles, citing potential waste, fraud, and abuse. Mayor Karen Bass has been called to testify before a House subcommittee about issues with the Los Angeles Homeless Services Authority (LAHSA). The subcommittee is concerned about "blatant corruption" in LAHSA's contracting process and the possible misallocation of federal dollars.
The U.S. Department of Housing and Urban Development (HUD) recently suspended federal funding for LAHSA, following an investigation that revealed alleged fraud and mismanagement. According to NBC Los Angeles, HUD accused LAHSA of making false statements and failing to reduce homelessness despite receiving significant funding. The investigation found that LAHSA did not adequately track individuals who left transitional housing and continued to pay for empty hotel rooms.
In response, LAHSA stated that it welcomes audits and external assessments, maintaining that no evidence of fraud or corruption has been found. The agency claims to have made significant improvements to its operations. Mayor Bass expressed "grave concerns" about LAHSA but criticized the federal funding suspension, arguing that it could jeopardize efforts to reduce homelessness.
The subcommittee has requested documents and communications from Bass, LAHSA, and the Los Angeles County Board of Supervisors dating back to 2020. The hearing, titled "Fixing Fraud and Failure in Federally Funded Homelessness Services," is scheduled for September 15.
The situation has sparked a legal battle between LAHSA and the Trump administration. A federal judge recently granted a preliminary injunction on the funding suspension, allowing LAHSA to continue its operations while the case proceeds. The trial is set to begin in February.