The Downtown Women’s Center in Skid Row, a beacon of hope for many seeking assistance, is grappling with significant funding changes that threaten its ability to help the homeless.
In April, the Los Angeles Homeless Services Authority (LAHSA) announced budget cuts that prevented the center and other service providers across the county from accepting new participants into the vital time-limited subsidy (TLS) program.
This program, considered crucial in helping homeless individuals transition to stable housing by providing temporary rent assistance, has been effectively closed to newcomers, leaving many in limbo.
Amy Turk, chief executive of the Downtown Women’s Center, expressed the anxiety felt by those seeking assistance, stating, “We are constantly asked ‘When’s that going to open up again?” Her answer is uncertain: “We don’t know.”
Experts warn that the closure of this pathway to housing could lead to a bottleneck in the system, with individuals remaining longer in shelters and, ultimately, on the streets.
Sasha Morozov, regional director for the homeless service provider PATH, described the situation as “heartbreaking,” given the time and resources dedicated to combating homelessness in the region.
Since its inception, the TLS program has been viewed as a lifeline, a crucial tool that contributed to a reduction in the number of unhoused people in the county for two consecutive years.
LAHSA’s deputy chief programs officer, Nathaniel VerGow, emphasized its importance, saying, “It’s really been key to how we’ve been able to move as many folks through our system and into permanent housing.”
The abrupt ramping down of subsidies comes in the wake of Measure A, a sales tax increase approved by voters in November. This measure was anticipated to raise up to a billion dollars annually to address the homelessness crisis; however, much of that funding is allocated primarily for the construction of new affordable housing, rather than direct homeless services.
Concurrently, economic slowdowns are anticipated to result in less sales tax revenue for homeless services for the current fiscal year, despite the new measure.
The ramifications of the diminished TLS funding are already unfolding. Katie Hill, chief executive of Union Station Homeless Services, noted that her organization began to curtail its reliance on these subsidy funds several months prior to the formal announcement. As a result, her organization has had to turn away more than 700 families seeking shelter, as their interim beds are fully occupied.
At LA Family Housing, chief programs officer Kimberly Roberts remarked on the drastic impact these cuts have on service delivery. Previously, her organization had facilitated the transition of approximately 50 households each month from their shelters to permanent housing using TLS, which in turn freed up interim beds.
Roberts lamented, “Right now we cannot do that. The decision to not invest more resources or add more dollars means there will be more people on the streets. It means there will be more encampments.”
The TLS program operates on a simple premise: LAHSA acquires funds from various government levels, then contracts with nonprofits and private entities that enroll homeless individuals and assist in paying landlords directly.
The subsidies are designed to last for up to two years, during which time the nonprofits assist individuals in securing employment or enrolling them in programs that provide long-term support.
However, LAHSA has announced the suspension of new enrollments due to budget cuts affecting not just TLS but various other programs as well. The funding reductions originate from state-level financial constraints and the expiration of one-time grants.
Although no cuts have been made to county funding for the subsidies, reductions in other homeless service programs have occurred.
LAHSA reports that it has $46 million less to allocate to TLS this fiscal year compared to the last, with further cuts anticipated starting in July 2026.
At present, individuals who are currently receiving time-limited subsidies will remain unaffected. LAHSA has adopted a “ramp down” strategy to manage the dwindling funding.
As existing subsidies expire this year, service providers will face challenges in enrolling new participants. LAHSA aims to reduce participant numbers from 7,700 last fiscal year to 2,500 by the close of this fiscal year, indicating that the enrollment of new individuals into the program could be scarce, if not impossible, in the near future.
The financial commitment to tackle homelessness in Los Angeles County has reached billions in taxpayer dollars in recent years. However, frustration is growing among some elected officials regarding the allocation and effectiveness of these funds in genuinely reducing homelessness.
In 2024, LAHSA reported a slight dip in the overall homeless population in the county, with a 4% reduction this year; nevertheless, more than 72,000 individuals continue to live in shelters or on the streets.
Los Angeles City Councilwoman Nithya Raman has praised time-limited subsidies for their potential cost-effectiveness, asserting that not everyone requires a lifetime government-funded permanent home.
Raman has previously advocated for greater efficiency within the TLS program, which she has characterized as underutilized. While acknowledging that improvements have been made, she expressed deep concern about the ongoing cuts to the TLS program and the potential implications for homelessness in the region.
Looking ahead, a federal-level housing subsidy that serves a similar function is expected to expire in 2026. Furthermore, the Trump administration has proposed additional cuts to the nation’s main rental subsidy program, known as Section 8.
Raman warned, “What we’re seeing in the next year to two years is a dramatic shrinking of the housing options available for people who are living on the street or who are living in shelters. The impacts of this are not to be underestimated.”
As the Los Angeles homeless service system grapples with these unprecedented funding challenges, the plight of those on the margins continues to worsen, leaving many uncertain about their future.
image source from：latimes
