Judge blocks HUD from cutting $241 million in Los Angeles homelessness aid
A federal judge halted HUD's move to suspend about $241 million in funding for LAHSA, keeping the money flowing for the 2026 cycle.
In a ruling that preserves roughly $241 million in federal assistance, Judge David O. Carter rejected HUD’s attempt to suspend the Los Angeles Homeless Services Authority’s grants. The judge stressed that an immediate cutoff would threaten housing and support for more than 11,000 individuals dependent on federally funded programs. While the decision keeps LAHSA operational for the 2026 funding cycle, it does not clear the agency of the financial oversight failures that prompted the federal probe.
Carter acknowledged the agency’s long-standing problems and allowed investigations into possible fraud to continue. He ordered Los Angeles officials to promptly seek alternative organizations to assume LAHSA’s key federal roles for 2027, and set a follow-up hearing for October.
Why it matters
The ruling ensures continued federal aid for thousands of homeless residents while keeping oversight of LAHSA’s use of taxpayer money.
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