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NewsTelemundo 52 — LocalJune 30, 2026United States

LAHSA Sues Federal Government Over Funding Suspension

The Los Angeles Homeless Services Authority (LAHSA) has filed a lawsuit and requested a temporary restraining order against the federal government to prevent the Department of Housing and Urban Development (HUD) from cutting off funding. HUD claims the agency engaged in financial mismanagement and false reporting, while LAHSA argues the decision is based on inaccurate information and threatens housing for 11,000 people.

homelessnessfederal fundinglitigationhousing policyHUDLAHSA
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Why It Matters

The outcome of this legal battle will determine whether federal funding for housing and support services for 11,000 individuals in Los Angeles continues or is terminated.

Key Facts

  • LAHSA filed a lawsuit and a request for a temporary restraining order against the federal government to block HUD from suspending funding.
  • HUD suspended federal funding to LAHSA on June 11, 2025, citing alleged financial mismanagement, false statements, and conflicts of interest.
  • The funding in question supports housing and services for approximately 11,000 people in Los Angeles County.
  • The Los Angeles Continuum of Care has received nearly $1 billion in federal funds over the past five years.
  • LAHSA disputes HUD's claims, alleging the federal notice contains factual errors, including the misattribution of $500 million in unspent funds.
  • LAHSA claims it has already implemented corrective actions to address previous financial review findings.
  • HUD Secretary Scott Turner stated the suspension is due to 'irresponsible actions and failures' by LAHSA.
  • LAHSA reports a 4% decrease in homelessness across the county in 2025 and a 3.4% decrease in the city of Los Angeles.
  • Unsheltered homelessness in the county decreased by 9.5% in 2025 compared to the previous year.
  • The number of people entering temporary housing in the city of Los Angeles increased by 4.7% in 2025.

Who's Mentioned

organizationLAHSA“Los Angeles Homeless Services Authority, the agency suing the federal government”personAmber Shiekh“Chair of the LAHSA Commission.”organizationHUD“U.S. Department of Housing and Urban Development, the federal agency that suspen”personGavin Newsom“Governor of California.”organizationTrump administration“The federal administration currently being sued by LAHSA.”personScott Turner“Secretary of HUD.”personGita O’Neill“Interim Executive Director of LAHSA.”