Close Menu
  • Home
  • United States
  • World
  • Politics
  • Business
  • Lifestyle
  • Entertainment
  • Health
  • Science
  • Tech
  • Sports
  • More
    • Web Stories
    • Editor’s Picks
    • Press Release

Subscribe to Updates

Get the latest USA news and updates directly to your inbox.

What's On
3 Movie Masterpieces You Need to Watch on Prime Video in June 2026

3 Movie Masterpieces You Need to Watch on Prime Video in June 2026

June 11, 2026
How World Cup’s sexiest fan has spent the last four years since viral fame exploded

How World Cup’s sexiest fan has spent the last four years since viral fame exploded

June 11, 2026
The Milky Way returns: How to take breathtaking photos of our galaxy this summer

The Milky Way returns: How to take breathtaking photos of our galaxy this summer

June 11, 2026
Facebook X (Twitter) Instagram
Trending
  • 3 Movie Masterpieces You Need to Watch on Prime Video in June 2026
  • How World Cup’s sexiest fan has spent the last four years since viral fame exploded
  • The Milky Way returns: How to take breathtaking photos of our galaxy this summer
  • Smartphones blamed for decline in fertility in new study
  • Elon Musk’s SpaceX IPO draws $70B in orders from retail investors, leaving many on sidelines: report
  • Texas TV reporter under fire for ‘gorilla in the room’ remark during Karmelo Anthony trial coverage
  • DOJ charges three with ‘wide-ranging conspiracy’ to smuggle migrant kids to the US
  • Ilhan Omar, Sarah McBride mock Nancy Mace over GOP gubernatorial primary loss
  • Privacy
  • Terms
  • Advertise
  • Contact Us
Join Us
USA TimesUSA Times
Newsletter Login
  • Home
  • United States
  • World
  • Politics
  • Business
  • Lifestyle
  • Entertainment
  • Health
  • Science
  • Tech
  • Sports
  • More
    • Web Stories
    • Editor’s Picks
    • Press Release
USA TimesUSA Times
Home » Trump admin cuts off LA homelessness agency funding amid fraud allegations
Trump admin cuts off LA homelessness agency funding amid fraud allegations
Entertainment

Trump admin cuts off LA homelessness agency funding amid fraud allegations

News RoomBy News RoomJune 11, 20261 ViewsNo Comments

The California system ‘got’ Spencer Pratt: Caitlyn Jenner

Caitlyn Jenner, contributor, slams California’s voting system, stating she has no faith in it. She criticizes universal mail-in ballots and ballot harvesting, and claims the system was changed under Governor Gavin Newsom during COVID. Jenner discusses her belief that the system is unfair, noting that Bill Essalyi’s office says California is blocking a federal audit of voter rolls.

NEWYou can now listen to articles!

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, 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 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

A person walks amid large trash piles at a sprawling homeless encampment near East 14th Street in downtown Los Angeles, Calif., on Sept. 25, 2025. (Allen J. Schaben / Los Angeles Times via Getty Images)

“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.

EX-NONPROFIT BOSS ALLEGEDLY SWIPED $1.2M MEANT FOR HOMELESS PROGRAMS TO FUND LAVISH LIFESTYLE, DA SAYS

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.

Homeless encampments lining the boardwalk at Venice Beach in Los Angeles

Homeless encampments line the boardwalk at Venice Beach in Los Angeles amid ongoing concerns about crime and quality of life issues. The Los Angeles Homeless Services Authority will conduct its annual point-in-time count to assess the number of unhoused people in the region. (Reuters)

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 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 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. 

Hotels in Los Angeles California with city skyline in background

Los Angeles Mayor Karen Bass advanced to a runoff in her bid to win reelection as Mayor of Los Angeles (Getty Images)

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.

CLICK HERE TO DOWNLOAD THE APP

“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.”

Digital reached out to LAHSA for comment.

Share. Facebook Twitter LinkedIn Telegram WhatsApp Email

Keep Reading

3 Movie Masterpieces You Need to Watch on Prime Video in June 2026

3 Movie Masterpieces You Need to Watch on Prime Video in June 2026

Ilhan Omar, Sarah McBride mock Nancy Mace over GOP gubernatorial primary loss

Ilhan Omar, Sarah McBride mock Nancy Mace over GOP gubernatorial primary loss

20 Best Prime Video Shows to Watch Right Now (June 2026): ‘Off Campus,’ ‘Spider-Noir’ and More

20 Best Prime Video Shows to Watch Right Now (June 2026): ‘Off Campus,’ ‘Spider-Noir’ and More

Taylor Sheridan’s ‘Lioness’ season three teaser trailer drops with Zoe Saldaña back in action on Paramount+

Taylor Sheridan’s ‘Lioness’ season three teaser trailer drops with Zoe Saldaña back in action on Paramount+

Jesse Ridgway Hits Back at People Telling Him to ‘Go to Hell’ After He and Wife Terminated Pregnancy

Jesse Ridgway Hits Back at People Telling Him to ‘Go to Hell’ After He and Wife Terminated Pregnancy

Sabato’s Crystal Ball shifts three Senate races toward Democrats in 2026

Sabato’s Crystal Ball shifts three Senate races toward Democrats in 2026

Knicks Radio Analyst Shades Taylor Swift Attending Game 4 of the NBA Finals: ‘Get Out of Here, Girl’

Knicks Radio Analyst Shades Taylor Swift Attending Game 4 of the NBA Finals: ‘Get Out of Here, Girl’

Sheriff Country’s Michele Weaver Reveals How She Hid Her Pregnancy in Season 1: ‘Hiding My Belly’

Sheriff Country’s Michele Weaver Reveals How She Hid Her Pregnancy in Season 1: ‘Hiding My Belly’

77-year-old Giants ball boy sparks one of the great MLB comebacks of all time with incredible diving play

77-year-old Giants ball boy sparks one of the great MLB comebacks of all time with incredible diving play

Add A Comment
Leave A Reply Cancel Reply

Editors Picks

How World Cup’s sexiest fan has spent the last four years since viral fame exploded

How World Cup’s sexiest fan has spent the last four years since viral fame exploded

June 11, 2026
The Milky Way returns: How to take breathtaking photos of our galaxy this summer

The Milky Way returns: How to take breathtaking photos of our galaxy this summer

June 11, 2026
Smartphones blamed for decline in fertility in new study

Smartphones blamed for decline in fertility in new study

June 11, 2026
Elon Musk’s SpaceX IPO draws B in orders from retail investors, leaving many on sidelines: report

Elon Musk’s SpaceX IPO draws $70B in orders from retail investors, leaving many on sidelines: report

June 11, 2026

Subscribe to News

Get the latest USA news and updates directly to your inbox.

Latest News
Texas TV reporter under fire for ‘gorilla in the room’ remark during Karmelo Anthony trial coverage

Texas TV reporter under fire for ‘gorilla in the room’ remark during Karmelo Anthony trial coverage

June 11, 2026
DOJ charges three with ‘wide-ranging conspiracy’ to smuggle migrant kids to the US

DOJ charges three with ‘wide-ranging conspiracy’ to smuggle migrant kids to the US

June 11, 2026
Ilhan Omar, Sarah McBride mock Nancy Mace over GOP gubernatorial primary loss

Ilhan Omar, Sarah McBride mock Nancy Mace over GOP gubernatorial primary loss

June 11, 2026
Facebook X (Twitter) Pinterest WhatsApp TikTok Instagram
© 2026 USA Times. All Rights Reserved.
  • Privacy Policy
  • Terms
  • Advertise
  • Contact

Type above and press Enter to search. Press Esc to cancel.