HUD Suspends Federal Funding for LA Homeless Services Authority Over Alleged Mismanagement
The Department of Housing and Urban Development cut off federal money to the LA Homeless Services Authority on June 11 over repeated false statements and weak financial controls. The agency had received nearly $1 billion since 2021.
nbcnews.comThe Department of Housing and Urban Development suspended federal funding for the LA Homeless Services Authority on June 11. The agency has received nearly $1 billion from the federal government since 2021. HUD accused the authority of repeated false statements, weak financial controls, conflicts of interest, and a severe and pervasive failure to safeguard taxpayer dollars.
The department issued the suspension notice through its role in the Task Force to Eliminate Fraud, which is overseen by Vice President JD Vance. 3 billion in suspected fraudulent government contracts. It stated that fraud and corruption ends today.
In June 2025, Judge David O. Carter called for greater oversight of Los Angeles’s homelessness bureaucracy in a lawsuit brought by the LA Alliance for Human Rights. When the system fails, people die, Carter wrote.
The LA Alliance for Human Rights said the homeless crisis in Los Angeles has been shaped by indifference, avoidance, and bureaucratic inertia for decades. Nearly seven unhoused people die every day in Los Angeles County, the group stated. The LA Homeless Services Authority has existed since 1993.
1 million in federal funds to a nonprofit that employed her husband. Kellum made more than $430,000 a year. The same week as Kellum’s resignation, the Los Angeles County Board of Supervisors voted to end its association with the authority, ending a relationship that dated to the agency’s founding and involved hundreds of millions of dollars a year.
HUD also cited a federal judge’s finding that the authority continued to seek funding for an 88-bed shelter that was operating at roughly half capacity.
