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Trump Admin PULLS Funding from LA Homeless Program Over Fraud
As part of ongoing efforts to crack down on fraud, the Trump administration is yanking nearly a billion dollars in funding from a Democrat-run homeless program in Los Angeles, CA.
The Los Angeles Homeless Services Authority’s (LAHSA) federal funding has been officially cut off after investigations revealed that the agency misspent millions of dollars and did not properly account for its spending.
Fox News was the first to report:
A top Trump agency is cutting off funding to the Los Angeles agency responsible for coordinating billions in homelessness spending after accusing it of “obvious fraud,” “wanton mismanagement” and repeated failures to safeguard taxpayer dollars, Fox News Digital has learned.
The Department of Housing and Urban Development (HUD), part of the White House fraud task force led by Vice President JD Vance, is immediately suspending the Los Angeles Homeless Services Authority’s (LAHSA) federal funding while HUD’s inspector general investigates potential offenses by the agency and its leadership, according to a letter sent to LAHSA’s board Chair Wendy Greuel and CEO Gita O’Neill, which was obtained and reviewed by Fox News Digital.
The letter detailed conflicts of interest, financial mismanagement, fraud, lack of oversight and more from the homelessness agency, which has faced efforts by the city and county to take it over.
LAHSA receives funding at the city, county, state and federal level, with the group getting nearly $1 billion from just the federal government since 2021, according to HUD.
This clip from Fox News dove deeper:
BREAKING: The Trump administration is officially DEFUNDING TENS OF MILLIONS of dollars from Los Angeles Democrats’ HOMELESS program after rampant fraud, abuse and waste
LONG OVERDUE! The fraud is crashing down!
“They just were informed within the last hour that they are losing these tens of millions of dollars. They’ve gotten almost over a billion dollars since 2021 and federal taxpayer funding.”
“This is a huge blow to this L.A. homeless authority.”
Of course, Democrats are outraged.
They are blasting the Trump administration’s move as a “politically-motivated attack” — not an effort to stop U.S. taxpayer money from being used for fraud!
The New York Times has more on the Democrats’ response:
LAHSA is receiving $69 million, about 8 percent of its overall budget, from the federal government this fiscal year, which ends June 30. Historically, the agency has relied more on the city and county governments of Los Angeles for its funding.
President Trump was already critical of the ways local agencies have long funded homelessness services. He plans to shift funding away from a “housing first” approach that prioritizes shelter, and wants to require people to enter drug treatment or find work as a condition of receiving a place to stay.
There has been widespread criticism of LAHSA’s spending, even from those who believe in its philosophical approach.
LAHSA officials said in a statement that they were making recommended changes to “modernize our financial systems” and that they were exploring options to contest the federal decision. The agency has 30 days to request a hearing to persuade federal officials to reverse course, according to the letter.
Los Angeles leaders said that the decision to pull tens of millions of dollars in federal funding entirely — rather than redirect it to other agencies — was just the latest politically motivated attack on a region that has been targeted by the president.
“This stunt is for publicity, not for results,” said Lindsey Horvath, a member of the Los Angeles County Board of Supervisors, who has led its homelessness committee. “I have been calling for change and accountability at LAHSA, but if this administration desires accountability, too, they should work with L.A. County.”
Mayor Karen Bass’s office said in a statement that the funding cuts would lead to dire consequences. “Ultimately people will lose their lives,” her office said.
What do you think?
Are you supportive of the Trump administration cutting off funding to this fraudulent homelessness program?
What are your thoughts?
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This is a Guest Post from our friends over at WLTReport. View the original article here.