Monday

08-04-2025 Vol 2042

Federal Funding Cuts Threaten Housing Services in Los Angeles County Following Trump Administration Meeting

Los Angeles County officials are increasingly alarmed about possible significant cuts to federal funding that supports housing initiatives in the region. This concern comes on the heels of a recent meeting with a senior appointee from the Trump administration, coupled with a new executive order from President Donald Trump.

The meeting underscored fears that Los Angeles could be at risk of losing crucial housing funds amid a confluence of local, state, and federal funding reductions impacting the social safety net.

President Trump’s executive order, issued last Thursday, specifies that housing grants will be prioritized to states and local agencies that enforce bans on urban camping, loitering, open drug use, and squatting to the fullest extent legally permissible.

According to Amy Perkins, a county official who attended the meeting, concerns about L.A.’s compliance with these enforcement standards were articulated by William Spencer, the U.S. Department of Housing and Urban Development’s regional administrator for California and several other states. Perkins stated that Spencer indicated he would recommend defunding Los Angeles to the President.

Perkins shared that Spencer was critical of L.A.’s efforts, asserting that the city was not doing enough in terms of enforcement. In her conversation with LAist, Perkins recounted Spencer’s words, “Mr. Trump will make all the decisions here. But I just want you to know, when he asks me for my recommendation — and he will — I will tell him to defund Los Angeles.”

Despite this alarming sentiment, Perkins noted that Spencer did express some support for funding specific populations, such as veterans, families with children, individuals with disabilities, and current housing voucher programs for youth.

However, Perkins said Spencer also criticized L.A.’s strategy of housing individuals who might not require assistance, suggesting that drug and alcohol use should not be classified as disabilities and labeling drug use as merely “bad choices.”

This particular stance on enforcement and funding has raised concerns about the ongoing risk of federal cuts to local housing subsidies, especially in light of existing reductions in various programs.

“I don’t think it can be understated how much all of the cuts that we’re seeing from this federal government will impact homelessness directly,” Perkins remarked during her conversation with LAist.

The financial strain is even more pronounced when considering California’s contributions to federal taxes. According to analyses from the public policy research institute of the State University of New York, Californians paid $72 billion more in federal taxes than they received in the fiscal year 2022, signaling significant inequities in funding distribution.

In the early parts of the meeting, Perkins recalled Spencer remarking on the need for fiscal responsibility, mentioning the national debt that totals $36 trillion. Perkins responded, emphasizing that the burden of balancing the budget should not fall on the most marginalized and oppressed individuals in society.

The potential repercussions of the President’s executive order could be severe, targeting funding for homeless services and housing available in Los Angeles County. This funding supports essential services that flow through local housing authorities and federal Continuum of Care funding provided by the L.A. Homeless Services Authority (LAHSA).

During a public presentation to county supervisors, county CEO Fesia Davenport articulated her concerns, noting that the executive order implies cuts to homeless services and housing funding. She characterized the situation as a “tidal wave of profound impacts,” exacerbated by the simultaneous threats of reducing federal Medicaid funding, the financial fallout from January’s wildfires, and a $4 billion settlement concerning thousands of historical sexual abuse claims.

Davenport highlighted that officials are proactively strategizing ways to separate or adjust federal funding in anticipation of potential reductions.

According to data from HUD, federal funding is vital for housing approximately 259,000 individuals in L.A. County. This included around 176,000 recipients of housing choice vouchers last year. Additionally, HUD’s Continuum of Care program provides funding for over 10,000 housing units across the county, with $220 million allocated this fiscal year to support 9,204 units of permanent housing alongside numerous interim housing units.

The mounting concern surrounding the possible federal withdrawal of funding raises questions about the future of housing and homelessness services in Los Angeles. County leaders urge immediate attention to the implications of these policy changes, which could reshape the landscape of supportive housing and threaten the stability of vulnerable populations.

As the situation evolves, officials remain vigilant in advocating for the needs of the homeless and low-income residents of Los Angeles County, reiterating the importance of federal support in addressing the ongoing humanitarian crisis.

image source from:laist

Charlotte Hayes