Thousands of Households in Los Angeles County at Risk of Homelessness Due to Federal Funding Cuts
Local officials in Los Angeles County are sounding the alarm over a potential crisis in the homeless services system, as more than 14,500 households that were previously homeless and are currently living in subsidized, permanent housing are at risk of being forced back onto the streets or into shelters. This is primarily due to a significant loss of federal funding, which could undermine the progress made in reducing the local homeless population since 2023.
The Los Angeles Homeless Services Authority (LAHSA) has estimated that approximately 3,500 households are at risk due to state funding cuts, while an additional 6,000 households could lose their housing because a federal emergency housing voucher program, launched during the pandemic, is set to expire next year. Furthermore, between 5,000 and 7,000 households could become homeless because their rent in permanent homes is paid by a separate federal program known as continuum of care, which is facing significant cuts.
Impact of Federal Funding Cuts on Homeless Services
The Trump administration’s decision to slash funding for permanent housing and shift dollars to temporary housing options has sparked widespread concern among local officials and nonprofit service providers. The administration’s new policy also makes it harder for localities to access funds if they don’t adhere to certain policies, such as enforcing camping bans. In response, more than 15 states, including California, have sued to stop the policy change.
Nonprofit service providers, such as L.A. Family Housing, are warning that the cuts could have devastating consequences, with many people being forced back into homelessness. “I cannot fathom a universe where we will not see people falling into homelessness and see our streets explode with folks who today are housed,” said Stephanie Klasky-Gamer, president of L.A. Family Housing.
Efforts to Mitigate the Crisis
Local officials, including Los Angeles City Councilwoman Nithya Raman, are scrambling to find solutions to mitigate the potential effects of the funding cuts. The Los Angeles City Council has ordered city staff to work with the county to ensure that available dollars are used efficiently to limit the possibility of budget cuts pushing people into the streets. The council has also asked staff to craft a plan to lobby federal and state officials to limit potential funding reductions.
LAHSA estimates that it would take at least $323 million to backfill all the money expected to be lost and keep the 14,500 households housed. However, securing additional funding could be challenging, given the Republican-controlled Congress’s efforts to shrink the size of government and the fiscal challenges faced by state and local governments.
Los Angeles Mayor Karen Bass has pledged to continue working to get people off the streets and keep them housed, despite the “attacks from D.C.” and the county’s financial situation. One potential avenue to lessen the pain from federal cuts could be Measure A, a half-cent tax to fight homelessness that was approved by voters last November.
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