The Trump administration on Thursday, Sept. 3, announced an investigation into what it called \u201cwaste, fraud and abuse\u201d of federal funds allegedly linked to the troubled Los Angeles Homeless Services Authority (LAHSA) and called on Los Angeles Mayor Karen Bass to testify before Congress later this month.<\/p>\n
In response, LAHSA officials welcomed the probe, saying that previous inquiries have found no corruption.<\/p>\n
Rep. Tim Burchett, R-Tenn., chairman of the House Subcommittee on Delivering on Government Efficiency, summoned Bass to testify at a hearing titled \u201cFixing Fraud and Failure in Federally Funded Homelessness Services\u201d on Sept. 15. In a letter, Burchett asked that Bass bring documents and communications related to \u201ccorrupt contracting and grant-making\u201d by LAHSA, and be ready to discuss allegations of self-enrichment among nonprofits to whom LAHSA has awarded funds.<\/p>\n
The DOGE subcommittee is investigating potential waste, fraud and abuse of federal grant funding intended to address homelessness in Los Angeles, according to the letter.<\/p>\n
\u201cSpecifically, the Subcommittee is concerned about the potential misallocation of federal dollars by the Los Angeles Homeless Services Authority to nonprofits in Los Angeles and the surrounding area,\u201d Burchett wrote. \u201cBecause Los Angeles officials have not adequately protected federal taxpayer dollars, it appears that many nonprofits to which those funds have been allocated are not using them for their intended purpose.\u201d<\/p>\n
Late Thursday, \u00a0LAHSA responded to the DOGE allegations of misusing federal funds intended for homeless services in the following statement:<\/p>\n
\u201cLAHSA consistently welcomes audits and external assessments to continually improve its work, and none of these reviews have ever found evidence of fraud or corruption. Both internal and independent audits have recommended operational enhancements, and LAHSA has delivered demonstrable progress. This improvement is reflected in key performance indicators across vital system components, including interim housing occupancy and permanent housing utilization rates.\u201d<\/p>\n
To understand \u201cthe extent of the problem and the steps being taken to safeguard federal funds,\u201d Burchett\u2019s letter requested related documents and information from Bass\u2019 office, and asked for her testimony at the hearing.<\/p>\n
Bass had not responded to the request to testify by deadline on Thursday.<\/p>\n
According to annual data from the U.S. Department of Housing and Urban Development, Burchett said, California has nearly 182,000 homeless people. Los Angeles County has 73,000 homeless people, and the city of Los Angeles has more than 45,000 homeless people, an increase of 3.4% from the year prior.<\/p>\n
LAHSA has received over $1 billion in federal funds since 2021, including $220 million in 2024 alone. U.S. Department of Housing and Urban Development officials are investigating LAHSA\u2019s use of federal funds stemming from allegations of fraud and widespread mismanagement.<\/p>\n
In June, HUD abruptly suspended further federal funding to LAHSA until officials can show adequate safeguards are in place to protect taxpayer dollars. But last month, a Los Angeles federal judge blocked the decision, finding that the sudden loss of cash would jeopardize housing and services for more than 11,000 people across the region.<\/p>\n