Judge Blocks Trump and Protects Funding for Thousands of Homeless People in Los Angeles

Posted on08/13/26 at 18:59
- Judge blocks Trump administration measure
- LAHSA regains access to funds
- Los Angeles faces housing crisis
A federal judge in California blocked a measure by President Donald Trump’s administration on Thursday that sought to prevent the main agency providing services to homeless people in Los Angeles from accessing federal funds. The decision puts the future of assistance for thousands of people in the region back at the center of the debate.
The ruling allows the Los Angeles Homeless Services Authority (LAHSA) to resume its functions and apply for approximately $240 million in funding that would benefit about 140 providers dedicated to addressing homelessness.
Judge rules government acted arbitrarily by suspending LAHSA

U.S. District Judge David O. Carter determined in his order that the U.S. Department of Housing and Urban Development acted arbitrarily when it decided in June to suspend LAHSA from accessing federal grant programs.
The judicial decision represents a setback for the Trump administration’s effort to change how these resources are administered and, for now, restores the Los Angeles agency’s ability to apply for the LAHSA federal funds.
However, Carter did not dismiss concerns related to possible financial mismanagement within LAHSA, arguments the U.S. government had cited as justification for removing the agency from access to the funds.
Carter warns that abruptly withdrawing services could have catastrophic consequences
In his order, the judge made clear that the dispute is not limited to the agency’s internal operations, but also involves the consequences that a sudden suspension of resources could have for people who depend on its services.
“LAHSA may be dysfunctional. However, thousands of homeless people depend on these services. It may be sound public policy to stop providing services to LAHSA. It is not for this Court to make that decision. However, any transition must be gradual and planned so that it does not leave catastrophic consequences,” the order stated.
With this argument, Carter indicated that any changes to the management of funds intended to address homelessness would have to be carried out in a planned manner to avoid directly affecting people who receive assistance.
More than 72,000 people remain homeless in Los Angeles County
The ruling comes as Los Angeles continues to face one of its most serious social problems, even though the latest data show a reduction in the number of homeless people.
More than 72,000 people in Los Angeles County were homeless in February, when LAHSA conducted a count to determine the size of the homeless population in the region.
The survey, published on July 14, highlighted a 4% decline for the second consecutive year, although the scale of the problem remains considerable.
Despite these slight decreases, homelessness continues to represent one of California’s most significant social and structural challenges, particularly because of the number of people who continue to depend on assistance programs and service providers.
Los Angeles still needs more than 485,000 affordable homes

The scale of the problem is also reflected in the region’s need for affordable housing, an issue that extends beyond the judicial dispute over who should administer federal funds.
LAHSA said in its latest report that the region still needs more than 485,000 affordable homes to meet current demand.
Judge Carter’s order allows LAHSA to once again apply for approximately $240 million intended for service providers, but it does not resolve the questions surrounding the agency’s management.
The ruling primarily establishes that any potential transition to another model for managing the resources cannot be carried out abruptly if there is a risk of leaving thousands of homeless people in Los Angeles without services.
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SOURCE: EFE