The Los Angeles Homeless Services Authority (LAHSA) has decided not to participate in the request-for-qualifications process for the region’s lead homelessness agency, relinquishing four major roles it has held for decades. This decision follows increasing pressure from the Trump administration and local officials regarding the agency's management of taxpayer funds.
On September 12, 2026, the LAHSA Commission voted to withdraw from responsibilities that include the annual application for federal homelessness funding, the Homeless Management Information System, the annual point-in-time count, and the coordinated-entry system. As a result, Los Angeles County and the city are now competing to assume these responsibilities, with the county aiming for all four roles and the city seeking at least two.
The decision comes amid accusations of mismanagement and lack of transparency directed at LAHSA from both the Trump administration and local officials. Just weeks prior, Robert F. Kennedy Jr. and HUD Secretary Scott Turner publicly criticized LA’s homelessness system. The federal government is also investigating LAHSA's use of federal funds due to allegations of fraud and mismanagement. Since 2021, LAHSA has received over $1 billion in federal funds, including $220 million for 2024.
The dispute over funding has escalated to federal court. In June, HUD suspended further funding to LAHSA until adequate safeguards could be demonstrated. However, a federal judge temporarily blocked this suspension last month, allowing LAHSA access to federal homelessness funding for fiscal year 2026. The 9th US Circuit Court of Appeals recently overruled this injunction, adding uncertainty to LAHSA’s ability to coordinate homelessness services.
Los Angeles County has established a new homelessness department and redirected $300 million away from LAHSA. Mayor Karen Bass and Councilwoman Nithya Raman, both candidates in the upcoming mayoral election, have expressed the need to create an independent city-run entity separate from LAHSA. Bass declined to attend a House hearing regarding the agency's allegations.
LAHSA stated that its decision will not impact its work leading the Continuum of Care or its support for the city through the end of fiscal year 2026-27, with agreements in place until June 30, 2027. Applicants had until September 12 to notify the Continuum of Care Board of their intent to apply, with applications due by September 25, and selections to be reviewed by HUD and the federal court.
California has approximately 182,000 homeless individuals, with Los Angeles County accounting for 73,000 and the city reporting over 45,000, reflecting a 3.4% increase from the previous year.