California pulls plug on $300 Million homelessness program—75,000 lives in limbo

Los Angeles, California – After three decades of jointly managing California’s largest homelessness crisis, Los Angeles County is dismantling its long-standing partnership with the city — a dramatic move that reflects growing tensions statewide over how local governments handle homelessness.

The Los Angeles Homeless Services Authority (LAHSA), created in the 1990s to ensure collaboration between city and county leaders, is being gutted after scathing audits revealed failures in accountability and financial oversight. The county will pull over $300 million in funding and more than 700 staffers from the agency to form a new, independent homelessness department — a decision made despite strong objections from LA Mayor Karen Bass.

The shakeup raises urgent questions about the fate of critical programs serving over 75,000 unhoused people across LA County, and it highlights a deeper, statewide issue: California’s cities and counties often struggle to work together, even though their collaboration is essential. Cities generally provide shelter and housing, while counties oversee mental health and addiction services — both crucial to getting people off the streets…

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