Trump Budget Targets Federal Funding for LA Homelessness Agency

President Trump has proposed a federal budget for the next fiscal year that seeks to eliminate the Continuum of Care, a U.S. Department of Housing and Urban Development program providing funding for housing and services for homeless Americans. The proposal includes a plan to cut approximately $393 million in federal homeless assistance.

In the budget proposal released on April 3, 2026, the White House specifically cited the Los Angeles Homeless Services Authority (LAHSA) as a primary example of the mismanagement and corruption that justify the elimination of the program. The administration is using the agency as a cautionary tale regarding the oversight of publicly funded programs managed by Democratic officials.

Criticism of LAHSA Oversight

The Trump administration’s budget highlights a lack of efficacy and financial accountability within LAHSA, which manages numerous homeless services for the city and county of Los Angeles. The proposal claims the agency has an abysmal record of reducing the number of street homeless individuals, which is the highest in the United States.

The White House further supported these claims by referencing an independent audit issued in March 2025. According to the budget, that audit found that LAHSA failed to accurately track billions of dollars in federal and local funding.

The administration stated that while nonprofits serving the homeless should focus on the most vulnerable and poorest individuals, investigations across the country have revealed corruption and fraud within the existing network of service providers.

Local Response and Impact

Gita O’Neill, the interim chief executive of LAHSA, responded to the budget proposal by stating that destabilizing the Continuum of Care program or cutting its funding would lead to an increase in tents on the streets. O’Neill asserted that under the agency’s leadership, unsheltered homelessness in Los Angeles has decreased by 15% and noted that 90% of the program’s funding is directed toward rental assistance.

Local officials in Los Angeles are already managing budget constraints that have led to cuts in homeless services at both the county and state levels. LAHSA warned that the proposed federal cuts would exacerbate these existing challenges and could push more than 14,500 households in L.A. County into homelessness.

Internal and Political Conflict in Los Angeles

The federal attack on LAHSA mirrors long-standing local criticisms regarding the agency’s oversight. Los Angeles County is currently in the process of transitioning various programs from LAHSA to an internal department.

Within the Los Angeles City Council, perspectives on the agency remain divided. Councilwoman Monica Rodriguez recently argued that the city should break away from LAHSA entirely, describing the city’s relationship with the agency as a merry-go-round from hell.

Conversely, Nithya Raman, a mayoral candidate and chair of the LA Council committee that oversees LAHSA, has opposed a complete break from the agency. Raman has instead suggested that an audit of the city’s homeless spending is necessary to determine where responsibility lies.