EXCLUSIVE: 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), which is a member 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 its 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.
The move puts one of the country’s biggest homelessness bureaucracies under direct federal scrutiny after years of criticism that billions have gone into homelessness programs in Los Angeles while the crisis remains entrenched on the streets. 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.
CALIFORNIA MAN ARRESTED FOR ALLEGEDLY STEALING MILLIONS IN HOMELESS FUNDS
“Suspending LAHSA’s participation in federal government programs is a necessary step in accomplishing that critical mission in Los Angeles,” HUD wrote in the letter. “LAHSA’s failures have been so severe and pervasive that Los Angeles County has withdrawn its funding for the agency, and the City of Los Angeles is considering doing so as well.”
LAHSA’s former top executive, Va Lecia Adams Kellum, resigned last year after she was found to have been a party to directing $2.1 million in federal funds under LAHSA’s control to her husband’s Santa Monica-based nonprofit employer.
HUD says a federal judge last year also concluded that LAHSA had committed “obvious fraud” after it allegedly kept requesting funding for an 88-bed shelter even though it knew the shelter was operating at roughly half-capacity.
HUD noted in its letter that the judge considered placing LAHSA into receivership as well.
LAHSA’s inability to verify the existence of nearly 2,300 housing sites for which it was responsible is another recent issue that has plagued the homelessness provider, according to HUD, which said 70% of the contracts for those sites did not disclose any expenses over the prior year.
Public audits of LAHSA, meanwhile, found a pattern of routinely paying service providers late and poor record keeping preventing it from monitoring contracts, including $5 million in cash advances sent to five different service providers, according to the Associated Press. In November 2024, the City Controller’s Office found that LAHSA failed to spend $513 million in public funds budgeted in fiscal year 2024, blaming a lack of staff and old technology, according to HUD.
“Under President Trump’s leadership, HUD will fund results, not corrupt failure or the homeless industrial complex,” HUD Secretary Scott Turner said in a statement to Fox News Digital. “Year after year, hundreds of millions of taxpayer dollars were funneled to LAHSA with little accountability. Meanwhile, homelessness skyrocketed. Taxpayers will no longer bankroll an organization that puts its own self-interests ahead of the Americans it was created to serve.”
Other audits concluded that LAHSA’s poor record keeping made it unable to accurately identify or calculate how well its spending has been benefiting the homeless population in Los Angeles.
KAREN BASS GRILLED OVER BROKEN HOMELESSNESS PROMISE, BLAMES BUREAUCRACY FOR SLOWED PROGRESS
Federal Trade Commission Chairman Andrew Ferguson, who is the vice chair of the White House Task Force to Eliminate Fraud, praised the leadership on this issue from HUD Secretary Scott Turner, President Donald Trump and Vance, who serves as the chairman of the fraud task force that was established earlier this year.
“Los Angeles didn’t care about helping the homeless, but the Trump Administration does,” Ferguson told Fox News Digital. “It is unconscionable that Los Angeles has wasted billions of taxpayer dollars that was supposed to be used on housing our nation’s most vulnerable. Instead of providing a roof and care for the homeless, Los Angeles has used these funds to line the pockets of left-wing NGOs. Such a disgrace ends today.”
Los Angeles Mayor Karen Bass and Los Angeles officials have pointed to recent homeless-count data as evidence that the crisis has begun to improve, with LAHSA reporting that countywide homelessness fell for a second straight year in 2025 and Bass saying it marked the first time in the city’s recent history that homelessness had declined two years in a row.
But the numbers still showed more than 72,000 people experiencing homelessness across Los Angeles County, and critics have continued to argue that modest declines do not erase years of runaway spending, encampments and repeated audit findings that the region’s homelessness system has failed to adequately track whether taxpayer dollars are producing results.
The federal action from HUD comes after Los Angeles city and county officials had already begun backing away from LAHSA, the Associated Press reported last year.
The city council moved to explore bypassing the agency and contracting directly with providers, while the county moved to redirect hundreds of millions of dollars in annual homelessness funding away from LAHSA and into a new county department, citing the need for stronger accountability after a series of audits.
“HUD cannot ignore LAHSA’s wanton mismanagement of public funds. HUD’s mission is to reduce the plague of homelessness in America,” the agency’s letter to LAHSA leadership on Thursday stated. “Turning over billions of dollars from American taxpayers to an organization under investigation and suspected of gross misuse of federal funding and “obvious fraud” does nothing to reduce homelessness. Indeed, diverting dollars from worthy programs to LAHSA merely makes the homeless crisis worse.”
Fox News Digital reached out to LAHSA for comment.
Trump admin yanks funding from LA homeless agency amid explosive fraud probe: ‘Necessary step’ 2026 IUSTITIA.BG – Investigations 2009-2025 2026-06-11 13:59:54 Latest news World news Country news Most important news latest news most important latest of the day Justice Petar Nizamov Feathers Petar Nizamov- Feathers Justice bg iustitia.bg iustitia iusticia usticia investigation Burgas Bulgaria news news of the last hour news of the day news of today Bulgaria news The news from Bulgaria blitz news top news most important most commented latest news Boyko Borisov news weather coronavirus news news weather facebook youtube facebook instagram news today news of the last minutes news today today news news bg news leading news hot news bg news site for news all news news bg news of the last hour latest latest news bg news of today news today news today news of the last hour latest news today news bg news news 24 hours news vesti bg novini news world bird bg bivol bg bivol trud bg novini latest news today novinite bg news hello bulgaria political party coat of arms delyan peevski scandalous Bulgarian National Television Free Europe Television scandal exclusive live tv live right now tv tv online tv program bg live now tv news online tv online live court Burgas court Burgas district court Burgas court Burgas district court Burgas district court Burgas appellate court Burgas prosecutor Burgas prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Burgas district prosecutor’s office Prosecutor General Ivan Geshev Prosecutor Geshev Tsatsarov Ministry of Internal Affairs Burgas ODMR Burgas ODPR Burgas police Burgas district police Burgas prosecutor Tsatsarov SGS cases Varna court chairman of the SGS court decisions on civil cases decisions on cases Plovdiv court decision of the court decisions cases Varna court criminal cases district district court decisions work in the court SGS chairman of the SGS judges Sofia court post judges Plovdiv court Plovdiv judges Plovdiv Supreme Court Inspectorate Supreme Court Supreme Judicial Council lawyer lawyer criminal cases lawyer civil cases lawyer marriage cases lawyer administrative criminal law criminal process civil law civil process administrative law constitutional law
