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Judge wants to preserve current federal funding for LA's lead homelessness agency amid legal battle
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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Topline:
A federal judge on Thursday indicated he wants to preserve federal funding for the embattled Los Angeles Homeless Services Authority as the agency sues the federal government for pulling access to these funds.
How we got here: The U.S. Department of Housing and Urban Development announced last month it was freezing funding to LAHSA, citing mismanagement on the agency’s part. LAHSA then vowed to fight the funding freeze in court, filing its lawsuit Monday.
The timeline: U.S. District Judge David O. Carter ordered LAHSA and HUD to submit a proposed agreement by July 16 that would maintain status quo funding of LAHSA’s services. He also set an Aug. 6 hearing, during which Carter will decide whether to issue a court order that would block the federal funding freeze. Carter also indicated he would endeavor to issue a final ruling by Aug. 26, which is currently the deadline for LAHSA to apply for new grants.
What’s at stake: LAHSA CEO Gita O’Neill estimated the suspension put as much as $150 million in grants in limbo that the federal government has already awarded but hasn’t finalized. HUD also said the suspension barred LAHSA from submitting an application on behalf of the entire region for the next round of federal grants, totaling up to $241 million, according to LAHSA’s estimates.
LAHSA’s response: “We look forward to our day in court on Aug. 6, when we will have the opportunity to argue for a definitive ruling,” O’Neill said in a statement Thursday. The same statement also incorrectly described Carter’s court order as a preliminary injunction against HUD’s actions. Carter will decide whether to issue the preliminary injunction at the Aug. 6 hearing. A LAHSA spokesperson later corrected the statement after an inquiry from LAist.
The long-running legal saga: In court proceedings tied to a separate case, Carter has repeatedly pushed LAHSA for more transparency. Just since last summer, he has considered seizing control of the L.A. region’s homelessness spending and holding LAHSA in contempt of court.
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Aaron Schrank and Nick Gerda contributed reporting.
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