The Brief

The Los Angeles region’s troubled homeless services agency announced this month that it will no longer manage the region’s federal homelessness dollars, amid scrutiny from the Trump administration.

Now, a federal court must help determine who will manage roughly $240 million in annual federal funding after the L.A. Homeless Services Authority gives up that long-held job in the coming months.

At a hearing Wednesday, U.S. District Judge David O. Carter said most of his attention is on who will administer the round of federal money that will be awarded in December and distributed next year.

The only potential near-term successor discussed in court was L.A. County, which created a new homelessness department and applied for the role. County officials have promised much stronger accountability and transparency.

But the city of L.A., where most of the region’s unhoused people live, is also interested in taking over some of LAHSA’s duties. The city could eventually try to break off and form its own regional body to receive federal funds, Carter said.

“But that’s for the future,” Carter said. “Right now, we have to deal with how do we move forward, protect the homeless, the citizens of L.A., and also take into account the fraud and the corruption that's been noted for so many years."

LAHSA's replacement will be chosen by the L.A. Continuum of Care, a regional planning body required by the federal housing department to coordinate housing and services for unhoused people across most of L.A. County.

Carter ordered that under-the-radar group — which includes local governments, nonprofit providers, housing developers, social services agencies, and people who have experienced homelessness — to start reviewing new applicants in August. The group is expected to make a decision next Friday.

‘The watchdog wasn’t watching’

LAHSA has been used as a punching bag, Carter said, but he blamed recent cases of alleged theft of taxpayer funds on a broader “failure of government” by both HUD and LAHSA.

“The watchdog wasn’t watching, and the money got distributed without accountability,” Carter said.

In the meantime, Carter said, LAHSA isn’t going anywhere. He said any transition must unfold gradually to avoid displacing people from housing and services.

“We’re going to have to live with LAHSA for at least some period of time,” Carter said. “The question might be how much?”

How soon could the county take over? 

Carter said he agreed with LAHSA’s decision to entrust another administrator to manage the money.

Attorneys for the U.S. Department of Housing and Urban Development (HUD) told Carter the next round of annual funding would be distributed over 2027.

Carter acknowledged HUD may be uneasy sending that money to LAHSA, the very agency it is investigating for fraud. Carter said he was struggling with the issue himself.

Carter signaled that he wants to see federal funding transferred to the county by January if it is chosen as LAHSA’s successor.

‘The devil is in the details’

At the hearing, federal prosecutor Bill Essayli said the Trump administration would rather reach an agreement than litigate. He said “the devil is in the details” when it comes to any transition away from LAHSA.

“We want assurances of anti-fraud measures,” Essayli said. “That way the money is never stolen again.”

Carter said he hoped a transition plan would keep the parties from spending millions of dollars on attorneys’ fees that could otherwise go toward housing and services.

How we got here

In June, the Trump administration suspended LAHSA from applying for federal funding, alleging years of financial mismanagement. LAHSA then sued, and Carter blocked the suspension in August. Carter’s decision has so far held up on appeal.

LAHSA’s governing commission voted this month to give up its federal roles next year, including managing federal homelessness dollars and conducting the region’s annual homeless count. Local officials have been taking applications from organizations that want to take over those duties in 2027.

Meanwhile, investigations into fraud have been widening. Prosecutors have so far charged six people connected to L.A. homeless service providers. LAHSA has said none of its staff are implicated.

When asked if LAHSA’s current or past leadership has been culpable, Essayli recently said, "It is not against federal law to be incompetent, unfortunately.”

Major shifts happening

For decades, county, city and federal dollars have been managed mainly by LAHSA. But those funding streams are now being redirected in the wake of repeated findings of mismanagement.

L.A. County pulled roughly $300 million of its annual homelessness funding in July and gave it to its new in-house Department of Homeless Services and Housing.

That leaves the city as LAHSA’s last major funder. The City Council has explored leaving, but hasn't reached a decision yet. City staff has estimated that building a city homeless services department would take up to two years.

On the campaign trail, Councilmember Nithya Raman has pledged to exit LAHSA within her first year if elected mayor, while incumbent Mayor Karen Bass has said it would take "a couple of years."

What’s next

Carter did not rule Wednesday on federal funding. He scheduled a hearing for Oct. 27 and described it as “our decision-making day on so many matters.”

Before then, local officials representing the L.A. Continuum of Care are expected to select a replacement to take over LAHSA’s federal administrative roles.

The Los Angeles Homeless Services Authority told its employees Friday to stop work, shut down their computers and stay off agency systems while it looked into “a potential security issue affecting our systems,” its chief executive confirmed to LAist.

That shutdown order was still in place Monday evening, according to a LAHSA official not authorized to speak on the record.

Gita O'Neill, the agency’s interim CEO, told LAist on Friday evening that the agency did not “yet have enough information to say definitively whether any sensitive or confidential personal information was accessed.”

She has not answered questions about whether or not services for unhoused people are disrupted.

Gita O’Neill, interim CEO of LAHSA, speaks ahead of the annual homeless count on Jan. 20, 2026.

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Jordan Rynning

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LAist

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LAHSA holds highly sensitive information collected from people experiencing homelessness in the region. The agency oversees the Homeless Management Information System, or HMIS, which includes unhoused people’s names, dates of birth, Social Security numbers and disabilities, as well as self-reported mental health and substance abuse history, income sources and domestic violence history.

In a statement Monday, LAHSA said it had taken its internal computer systems offline “as a precaution” and “engaged outside cybersecurity specialists to investigate the nature and scope of the incident.” The statement, sent on O'Neill's behalf by outside public relations strategist Trevor Daley, continued to call it “a potential cybersecurity incident.”

The agency is “taking steps to maintain essential operations,” the statement added, saying LAHSA “remains open” while the investigation continues. It said the agency is working with its technical and legal teams.

What staff were told

Friday’s email to "Team LAHSA" carried the subject line "URGENT: Log Off and Shut Down for the Week." LAist obtained a copy, and O'Neill confirmed by text message that she had sent it.

“As a precaution while we look into a potential security issue affecting our systems, we're asking all staff to stop work and take their machines offline for the remainder of today and through the weekend,” the email said.

It told employees to “Log off and shut down your LAHSA computer” and not to log back in or connect to LAHSA systems, including email, “until you receive an all-clear from us.”

The email also told staff to report anything “unusual” before shutting down, such as “files renaming on their own, unexpected pop-ups or messages.”

What LAHSA leadership has said

In a texted response to LAist on Friday evening, O'Neill said she asked staff to take their computers offline “out of an abundance of caution” while the agency’s IT team assessed the situation.

“Our IT team is actively reviewing the situation now and working to understand exactly what occurred and whether any information was affected,” she wrote. “Protecting people’s personal and confidential information is a top priority in that review.”

Leaders of three LAHSA-funded service providers told LAist on Monday afternoon that they had not received any communications from LAHSA about the potential cybersecurity issue. All three use the HMIS system that holds unhoused people’s personal details.

Previous attacks against another LA housing agency

Another L.A. housing agency was previously hit by cyberattacks. The Housing Authority of the City of Los Angeles — a separate agency known as HACLA — has said hackers got inside its network in 2022 and may have accessed people’s names, Social Security numbers, financial accounts numbers and medical information.

Two years later, HACLA was breached again, according to an official notice, with hackers potentially accessing names, dates of birth, Social Security numbers and phone numbers.

LAist reporter Aaron Schrank contributed reporting to this story.

Los Angeles County Supervisor Lindsey Horvath announced Monday that she is running to be the county’s first elected chief executive. Horvath is the only candidate so far to enter the race, which is set for 2028.

The new executive post will take the place of the county’s appointed CEO and implement key priorities of the county Board of Supervisors. The executive will oversee the county budget, which is currently roughly $50 billion, and labor relations with more than 100,000 employees.

Horvath was first elected to the Board of Supervisors in 2022 and was re-elected in June to another four-year term. She represents the county’s 3rd District, which covers the San Fernando Valley and parts of the Westside and Central Los Angeles. She is a former mayor of West Hollywood.

The supervisor made her announcement Monday via social media and her campaign website. She called the race a “once-in-a-generation opportunity.”

The backstory

Voters created the position in 2024 when they approved Measure G, which was proposed by Supervisors Horvath and Janice Hahn.

Among other changes, the measure allowed the Board of Supervisors to expand from five to nine members by 2030 and established an independent Ethics Commission, which held its first meeting last month.

The pushback

On Monday, Supervisor Kathryn Barger issued a statement saying she believed it was “premature” to campaign for the new county executive position when it remained unclear whether “the office itself is constitutional.”

Barger pointed to questions raised by former federal judge Stephen Larson about whether California’s Constitution allows an elected county executive to veto board decisions, control county contracts and take on powers state law currently gives the Board of Supervisors.

“Moving forward with an office that would fundamentally change how Los Angeles County is governed, without first resolving these questions, is putting the cart before the horse,” Barger said in her statement. “We need clarity.”

The primary election is scheduled for March 7, 2028.

The Los Angeles Unified School District said it’s reviewing how to proceed after Google’s announcement last week that it will not allow schools to use its search engine unless they opt in to using artificial intelligence.

Google said that in the coming months, access to products like Gemini and Google Search would be turned off by default until schools turn them on, saying it believes “schools should have control over AI in their classroom.” But Google Search, by default, includes an AI chatbot and uses AI to summarize search results — meaning that schools that restrict AI would not have access to Google Search.

Earlier this school year, LAUSD implemented a moratorium on students using generative AI on district-issued devices.

“We are reviewing Google’s announcement and its potential implications for schools, educators and students,” said a spokesperson for LAUSD. “Los Angeles Unified believes emerging technologies, including artificial intelligence, have the potential to enhance teaching and learning when introduced thoughtfully, responsibly and with clear safeguards.”

“Search and A.I. are deeply integrated,” Chris Phillips, vice president for education at Google, said to The New York Times. He told the outlet that if a school bans AI, students “will not have access to search, and they’ll see a message from their school that indicates it’s not available.”

What are schools doing now?

Currently, students in LAUSD can still use Google to search for information, a district spokesperson said, but the AI mode — in which students can converse with the company’s chatbot, Gemini — is turned off. Some searches may still show an AI-generated summary or overview. The district has asked Google for a modification to allow the summaries to be turned off.

If a school does opt in to artificial intelligence, Google said it will offer a “guided learning” tool in its chatbot for student accounts “to help them work through problems without skipping straight to answers.”

The announcement has prompted outcry from advocates. "Google forced its AI products into classrooms, and parents fought back," said Lila Byock, founder of Schools Beyond Screens, the group that pushed for LAUSD’s AI moratorium, as well as the district’s screen time limit. "Now Google is refusing to take no for an answer. … Schools Beyond Screens calls on district leaders to reclaim their authority from corporate interests and divest from Google."

The district’s ad hoc committee on generative AI is scheduled to have its next meeting on Nov. 13.

Rep. Thomas Massie moved Monday to force a vote to impeach Defense Secretary Pete Hegseth, setting the stage for a dramatic vote on whether to remove one of the Trump administration’s most prominent figures following sweeping election losses.

The impeachment resolution was introduced by Massie, a Kentucky Republican, as soon as the House opened for the first day of sessions after the midterms. It largely focuses on the war in Iran but also includes references to Hegseth’s role in carrying out military actions in Yemen and Venezuela.

Massie said the secretary’s actions amount to “high crimes and misdemeanors” and his leadership at the Pentagon “thus warrants impeachment.”

A vote in the House could come by mid-week, putting pressure on Republicans — many of whom blamed their election wipeout on the Iran war — but next steps are highly uncertain.

House Speaker Mike Johnson had tried to prevent this outcome, and warned lawmakers against impeaching the Defense secretary while the U.S. is engaged in military actions in the Middle East.

“Impeaching a Cabinet secretary right now, especially the Department of War in the middle of hostilities abroad would be a terrible, terrible look, a terrible thing for our allies and our enemies to see that,” Johnson, a Republican, said as he opened the chamber.

“We don’t impeach Cabinet secretaries for political gain or for cheap tricks, and I think that’s what this is and I think everybody knows it.”

Most House Democrats are expected to support impeaching Hegseth, with Democratic Leader Hakeem Jeffries saying over the weekend it’s time for the Defense secretary to go.

If the House votes to impeach Hegseth, it would next go to the Senate for a potential trial. Republicans remain in the majority in both chambers, until the new Congress convenes in January with Democrats in control.

Hegseth issues his own defense and prepares for a fight

Hegseth maintains he’s eager to litigate the military actions that he and President Donald Trump have taken against Iran, Yemen’s Iranian-backed Houthi rebels and Venezuela’s previous leaders.

“If you want to take issue with what we did in Epic Fury or Rough Rider or nabbing Nicolás Maduro, you’re taking issue with the troops and what they accomplished, which is historic,” Hegseth told reporters Monday, using the military code names for the Iran war and campaign of strikes to halt the Houthis’ attacks on shipping in the Middle East.

Hegseth also announced that he would hold a rare news conference on Tuesday — his first in over 180 days — on the impeachment threat. His last briefing was in May, and he has not held one on the Iran war, strikes on alleged drug-trafficking boats or other U.S. military actions since then.

The Pentagon chief is bearing the brunt of anger and calls for his ouster after the Iran war and its economic impact contributed to severe Republican losses in the midterm elections that cost the party control of Congress.

Hegseth waves off impeachment push as ‘noise’

Hegseth, after giving a speech at the Naval War College in Rhode Island, brushed aside the impeachment push.

“There’s a lot of politically motivated people who may have substantial policy disagreements, but their disagreements are with success,” he told reporters. He added that “if we want to litigate” the military actions that the Trump administration has taken, “I’m happy to do it all day long.”

“My team, we’re not worried about the noise — it’s what I told the troops, too — ‘don’t worry about the noise,’” he said.

Asked about Vice President JD Vance blaming the Iran war for the massive GOP losses in the election, Hegseth noted that Trump said he would do it again, and “I agree.”

He largely repeated a line that Secretary of State Marco Rubio said to reporters a day earlier: “It doesn’t have to be necessarily popular, but it can be necessary.”

Hegseth argued that the war was necessary because “someone had to confront the Iranian regime’s pursuit of a nuclear weapon” and said “the choice was don’t act and wish it away or take a bold move.”

Iran has long maintained that its nuclear program is peaceful. According to the International Atomic Energy Agency, Iran has 440.9 kilograms (972 pounds) of uranium that is enriched up to 60% purity, a short, technical step from weapons-grade levels of 90%.

Trump defended Hegseth to reporters on Sunday night.

“He’s guilty of two things, basically winning two wars,” Trump said. “I believe we saved the Middle East and Israel combined. And it’s awfully hard to say let’s impeach somebody who did that.”

Pentagon chief insists ‘Iran is devastated’

Hegseth reiterated that “Iran is devastated,” even though the Islamic Republic has been able to keep striking military bases in the Middle East that are used by the United States, causing billions of dollars in damage, as well as commercial ships in the Strait of Hormuz. Disruptions to shipping in the waterway, where one-fifth of the world’s oil passed before the war, have led to higher energy prices that hit voters’ pocketbooks.

He said the next steps on the war are up to Trump, including telling Iran: “Hey, we’re done, and we’re going to watch your nuclear material. You better not move it.”

Hegseth’s defense of the war comes after about 6 in 10 voters said the U.S. made the “wrong decision” in taking military action against Iran, according to The AP Voter Poll, a survey of more than 100,000 voters in the United States.

With anger in Congress rising, Hegseth has been on a social media blitz, posting a video last week acknowledging the threat of impeachment. He said it would be “all about the politics of personal destruction” and insisted that “won’t work with me. You can rest assured of that.”

Since then, scores of political appointees within the Pentagon have posted images of Hegseth emblazoned with the words, “Stand. Fight. Defend the Republic.” The White House also posted a video to social media that featured praise from Trump.

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Associated Press writers Kevin Freking and Joey Cappelletti contributed to this report.