LA County braces for potentially massive financial blow as Trump tries to crack down on homelessness

L.A. County is bracing for a potentially devastating shortfall in funding for homelessness services in the years ahead as the federal government signals cuts, officials said Thursday.

The county’s financial concerns come amid a perfect storm of local, state and federal funding reductions, said Sarah Mahin, director of the county’s new homelessness department.

Her warning came on the same day President Donald Trump signed an executive order seeking to overhaul the way the U.S. manages homelessness, prompting more local concerns.

The order seeks to shift federal grant funding to states and cities that enforce prohibitions on urban camping, enforce prohibitions on drug use and adopt policies allowing people with serious mental illnesses or substance use disorders to be forced into treatment.

“The federal government is on an all-out assault on funding and services for our most vulnerable,” Mahin said at a meeting with county homelessness officials. “Our housing authorities no longer have vouchers to issue. Medi-CAL is being cut. Food assistance is being cut.  The people we serve are more at risk than ever before and resources are disappearing.”

Mahin, who began leading the new department this month, said local officials are still determining the full effects of the federal government’s actions on homelessness, but there will be more significant cuts to come.

Amy Perkins, homelessness advisor to L.A. County Supervisor Lindsey Horvath, said representatives with the Department of Housing and Urban Development recently indicated they might pull more homeless funding from L.A.

"I think it's important to state that we met with HUD this week, with a Trump appointee who made very clear that he would recommend there would be no funding coming to our city,” Perkins said at Thursday’s meeting.

LAist reached out to HUD for comment, but did not receive a response.

The loss would be immense. In February, the L.A. Homeless Services Agency reported HUD had awarded more than $200 million in renewal and additional funds to help combat homelessness in the county. The agency said it was a $31 million increase over the previous fiscal year.

L.A. County homelessness officials say some federal funding sources are set to dry up soon, including from the American Rescue Plan Act. Several state grants will also be reduced.

Meanwhile, officials are anticipating potential reductions to federal funding for housing vouchers and various housing grants. In early April, the Los Angeles County Board of Supervisors voted to shift funding away from LAHSA and establish a new county department dedicated to addressing homelessness.County officials say the bleak budget picture reinforces the need for that new department.

“ This is the beginning of an ongoing conversation as we move urgently to bring the county's homelessness response under one unified department to ensure accountability and faster results,” Mahin said.

In April, L.A. County began collecting sales tax revenue from Measure A, a voter-approved ballot measure that’s expected to generate about $1 billion annually for homeless services.

Trump's order on Thursday came nearly a year to the day that California Gov. Gavin Newsom issued an order encouraging cities in the state to dismantle homeless encampments.