A federal judge in California on Thursday blocked the decision of President Donald Trump's administration to suspend the Los Angeles Homeless Services Authority's (LAHSA) access to federal funds, considering that the measure could put essential services at risk for thousands of people in the region.
District Judge David O. Carter issued a partial preliminary order once again allowing LAHSA to request resources for fiscal year 2026. At stake are nearly $241 million appropriated by Congress for anti-homelessness programs in Los Angeles and funds earmarked for projects that will continue into the next fiscal year.
The decision represents a setback for the United States Department of Housing and Urban Development (HUD), which in June withdrew LAHSA's authority to request federal resources on behalf of the so-called “Continuum of Care” of Los Angeles. Carter considered that HUD acted arbitrarily and noted that the sudden suspension could cause serious consequences for people who depend on these programs.
"LAHSA may be dysfunctional. Yet thousands of homeless people depend on these services," the justice wrote. He added that any changes to the system must be made in a “gradual and planned” manner to avoid catastrophic consequences.
Funds benefit thousands of people in Los Angeles
The federal resources involved finance approximately 140 projects aimed at serving different groups affected by homelessness, including veterans, families, children, youth, older adults and survivors of intimate partner violence.
According to the court order, the programs reach 89 veterans, 1,030 families, 1,923 children, 823 transition-age youth, 1,627 seniors and 901 people affected by domestic violence.
Los Angeles County Supervisor Kathryn Barger welcomed the ruling and maintained that the decision allows services to be maintained while structural changes are made. “We cannot abruptly stop the funding that people who are currently homeless depend on,” Barger said. At the same time, it recognized the need to improve system administration and strengthen accountability.
HUD had justified its decision with allegations of fraud, false statements, financial deficiencies, and lack of adequate controls within LAHSA. Its secretary, Scott Turner, had said that the agency had management failures and problems related to conflicts of interest.
Housing crisis continues despite recent progress
Carter also questioned the relationship between LAHSA, the city and county of Los Angeles, noting that for years the different institutions have held each other accountable for management problems. The judge even held that HUD had been “complicit” in that cycle of shifting responsibility, having previously learned of some of the same concerns it is now using to challenge LAHSA.
The dispute comes as Los Angeles continues to face one of the largest homelessness crises in the United States. More than 72,000 people were homeless in the county when the February count was taken, although the figure represented a 4% reduction for the second year in a row.
Additionally, HUD data cited by Governor Gavin Newsom shows that Los Angeles saw a 10.3% decline in people living outdoors. California, for its part, reported the largest national decline in this category since 2009.
Even with those advances, LAHSA estimates that the region needs more than 485,000 affordable homes to meet current demand.
