Judge blocks Trump administration from suspending $240M in LA homelessness funds

By New York Post (U.S.) | Created at 2026-08-13 16:26:02 | Updated at 2026-08-13 17:37:20 1 hour ago

A federal judge temporarily blocked the Trump administration from cutting LAHSA out of Los Angeles’ federal homelessness funding system.

The ruling keeps roughly $241 million in federal funding flowing to the region and leaves LAHSA, Los Angeles’ main homeless services agency serving both the city and county, in place for the 2026 funding cycle. In June, HUD moved to block the funding, notifying LAHSA in a letter that it was suspending the agency from receiving federal grants.

A homeless encampment with a person standing next to a yellow fire hydrant and a tent in downtown Los Angeles.

President Donald Trump talking to reporters.

Judge David O. Carter sided with concerns that abruptly cutting off LAHSA could jeopardize housing and services for more than 11,000 people who depend on federally funded programs.

He ruled HUD acted improperly by suspending the agency without enough time for Los Angeles to transition to another system.

But Carter did not clear LAHSA of the financial mismanagement and oversight failures that triggered the federal investigation.

He acknowledged the agency’s long history of problems and left the door open for federal investigations into fraud and misuse of taxpayer money to continue.

The reprieve may also be temporary.

Carter ordered Los Angeles officials to immediately begin looking for organizations that could replace LAHSA in its key federal roles for 2027, with the fight returning to his courtroom in October.