In a significant move, the Trump administration has announced plans to reduce federal funding for homeless initiatives by close to $400 million. This decision also includes criticism aimed at Los Angeles’ homeless-services agency, which has been labeled as having a poor performance record.

According to the budget proposal unveiled on Friday, the White House has accused the Los Angeles Homeless Services Authority (LAHSA) of failing in its mission to provide housing for the homeless population.

The proposal specifically highlighted LAHSA’s shortcomings, stating, “LAHSA has a dismal record in addressing the highest number of street homeless individuals in the nation. An independent audit from March 2025 revealed that the authority did not properly track billions in federal and local funding.”

As part of the budget cuts, the administration intends to reduce federal assistance for homeless programs by $393 million and discontinue funding for the Continuum of Care program, which is supported by the U.S. Department of Housing and Urban Development.

The budget document further criticized nonprofit organizations serving the homeless, suggesting they should prioritize aiding the most disadvantaged individuals. It also pointed out that investigations nationwide have exposed instances of fraud and corruption within the network of homeless service providers.

Over the years, LAHSA has faced growing criticism from local officials. Last month, LA Councilwoman Monica Rodriguez expressed the need for the city to sever ties with the agency, describing their partnership with LAHSA as a “merry-go-round from hell.”

The agency believes any lost funding will only damage its mission.

“Cutting this funding or destabilizing the Continuum of Care program would directly result in more tents on our streets, not fewer,” Gita O’Neill, the agency’s interim chief executive, told the Los Angeles Times.

“If anything, we need additional funding to cover rising costs, not fewer, to maintain our current momentum,” the agency added.

LA pours more than $1 billion a year into homelessness programs, though the city remains one of the most maligned over the crisis. Many have accused the city of misspending the funds, and its a constant target of criticism for its failures to quiet the concerns.

“We’re hemorrhaging money on a homelessness system that was never designed to succeed — and no one is being held accountable for the failure,” Rodriguez said.

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