Add The California Post on Google A federal judge temporarily blocked the Trump administration from cutting LAHSA out of Los Angeles’ federal homelessness funding system.
The ruling keeps roughly $241 million in federal funding flowing to the region and leaves LAHSA, Los Angeles’ main homeless services agency serving both the city and county, in place for the 2026 funding cycle. In June, HUD moved to block the funding, notifying LAHSA in a letter that it was suspending the agency from receiving federal grants.
Homeless figures are seen in downtown Los Angeles, CA, on Thursday, July 23, 2026. Andy Johnstone for CA Post President Donald Trump talks to reporters after arriving on Air Force One Wednesday, Aug. 12, 2026, at Joint Base Andrews. AP Photo/Mark Schiefelbein Judge David O. Carter sided with concerns that abruptly cutting off LAHSA could jeopardize housing and services for more than 11,000 people who depend on federally funded programs.
He ruled HUD acted improperly by suspending the agency without enough time for Los Angeles to transition to another system.
But Carter did not clear LAHSA of the financial mismanagement and oversight failures that triggered the federal investigation.
He acknowledged the agency’s long history of problems and left the door open for federal investigations into fraud and misuse of taxpayer money to continue.
Carter ordered Los Angeles officials to immediately begin looking for organizations that could replace LAHSA in its key federal roles for 2027, with the fight returning to his courtroom in October.
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