By New York Post (U.S.) | Created at 2026-07-23 21:26:03 | Updated at 2026-08-09 10:06:09
2 weeks ago
Los Angeles’ most expensive crisis is moving in the wrong direction.
Shocking new numbers show that despite spending nearly $3 billion a year on homelessness programs, the city is expected to report that the homeless population grew in 2026, according to multiple sources familiar with the annual count.
The increase, expected to be confirmed Friday when the delayed Greater Los Angeles Homeless Count is released, would reverse two consecutive years of declines.
Sources familiar with the findings told The California Post that the number of people experiencing homelessness in the City of Los Angeles increased by about 3.4%, while the number of people living unsheltered on streets, sidewalks and in encampments rose by roughly 7.9%.
The spending supports a broad network of homelessness programs, including emergency shelters, motel rooms and permanent supportive housing and affordable housing construction.
This year alone, Los Angeles budgeted nearly $100 million for Mayor Karen Bass’ signature Inside Safe program.
The initiative funds encampment operations, motel rooms, interim housing, outreach teams and supportive services designed to move people off the streets.
City budget documents estimate the program will cost about $34,000 per participant served this fiscal year.
The city also continues investing hundreds of millions of dollars in Project Homekey, Proposition HHH housing, rental subsidy programs, Tiny Home Villages and outreach contracts.
Separately, Los Angeles County approved a $908 million homelessness budget that funds about 7,200 shelter beds, outreach teams serving roughly 21,000 unsheltered people and more than 3,100 housing navigation slots.
Beginning this month, Measure A, the permanent countywide sales tax approved by voters, is expected to generate more than $1 billion annually for homelessness services.
Taken together, city and county governments now have nearly $3 billion a year available to address homelessness.
The expected count increase is also drawing renewed criticism from watchdog groups who say the region continues to spend billions of dollars without a clear understanding of what is working.
“The increase in Los Angeles’ homeless count comes as no surprise,” said Paul Webster, executive director of the LA Alliance for Human Rights, the organization that is suing the city and county over their handling of the homelessness crisis.
Webster said the increase reflects a broader failure to measure whether the billions being spent are producing results.
“If there was a competent agency dedicated to outcomes, transparency, and accountability for the billions spent every year, we may have a glimpse at what should be done to solve this humanitarian crisis,” Webster said.
“Instead, we have poor leadership, finger pointing, and endless distractions that prevent getting to the real issues of addiction, mental illness, affordable housing, and public safety.”
The 2025 homeless count found 72,308 people experiencing homelessness across Los Angeles County, down 4% from the previous year. Within the City of Los Angeles, the count fell to 43,699, a 3.4% decline.
The findings also arrive as homelessness remains the defining issue of this year’s bid for the next mayor of Los Angeles.
Mayor Karen Bass’ declared a local homelessness emergency on her first day in office and launched Inside Safe, describing the effort as “building the plane while flying it” as the city expanded shelter capacity and moved people indoors.
Her administration has repeatedly highlighted reductions in street homelessness and encampments as evidence the strategy was producing results.
Before the report’s release, however, Bass acknowledged this year’s count could increase, citing rising housing costs, reductions in state and federal funding and growing financial pressure on low-income residents.
“After decades of inaction, Karen Bass has driven down homelessness by 13% — that’s huge,” Bass spokesperson Alex Stack told The California Post. “She’s out there every week getting folks off the streets and cleaning up encampments.
“As expected, the Trump Administration’s affordability crisis and federal and state cuts resulted in a slight increase last year. What we won’t do is go back to a failed system that left Angelenos to die on the streets.”
The results are also likely to draw attention to Councilwoman Nithya Raman,who chairs the City Council’s Housing and Homelessness Committee and is challenging Bass for mayor.
Raman has argued that permanent supportive housing, rental assistance and long-term affordable housing investments provide the most effective path out of homelessness, while criticizing the city’s reliance on costly motel rooms and temporary shelter programs.
Still, earlier this month, The Post reported that Raman’s $62.6 million Time Limited Subsidy program had permanently housed three households despite a goal of moving 2,000 households into permanent housing.
The program was designed to subsidize rent in private apartments as a lower-cost alternative to motel shelters.
Nearly a year after receiving City Council approval, city records showed only three households had moved into permanent housing.
The California Post also reported that a $4 million state grant intended to clear homeless encampments along the Los Angeles River remained unspent nearly two years after it was awarded.
Friday’s report also arrives during a period of heightened scrutiny for the Los Angeles Homeless Services Authority, the agency that coordinates much of the region’s homelessness response.
LAHSA has faced multiple audits, criticism over its finances and increasing scrutiny from city, county and federal officials.
Federal officials recently suspended grant funding administered through the agency while reviewing its operations.
The timing of the report’s release has also drawn attention.
The homeless count is typically published in late spring or early summer. This year’s report is being released months later than usual.
According to sources familiar with the process, city officials received the results last week, but LAHSA has not publicly explained why publication of the report was delayed.
