WASHINGTON — President Trump is singling out the Los Angeles Homeless Services Authority as a cautionary tale about Democratic mismanagement of publicly funded programs, using it to justify proposed cuts to homeless assistance services across the country.
Trump’s proposed budget for the next fiscal year, released Friday, asks Congress to eliminate the Continuum of Care — a federal program that funds housing and services for homeless Americans — citing concerns about “fraud and corruption” among local agencies that administer it.
The White House points to LAHSA, which manages many homeless services for the city and county, as the example of why the program needs to go.
The agency has faced criticism locally for years for lack of proper oversight and the county is in the process of transitioning programs to an internal department.
“LAHSA has an abysmal record of reducing what is the highest number of street homeless individuals in the United States, and an independent audit issued in March 2025 found that the authority failed to accurately track billions of Federal and local dollars,” the budget says.
The local agency pushed back in a statement after the budget was released.
“Cutting this funding or destabilizing the Continuum of Care program would directly result in more tents on our streets, not fewer,” said Gita O’Neill, the agency’s interim chief executive, adding that under its leadership unsheltered homelessness in Los Angeles has fallen 15% and that 90% of the program’s funding goes “directly to rental assistance.”
Local officials are already grappling with homeless service cuts at the state and county level given budget constraints and LAHSA warned Trump’s proposal would make matters worse.
“If anything, we need additional funding to cover rising costs, not fewer, to maintain our current momentum,” the agency said Friday.
The funding dispute over homelessness services is one front in a broader budget assault on California programs by the Trump administration.
Trump’s proposal also asks Congress to eliminate millions in funding from state initiatives the White House is characterizing as wasteful, ineffective or “woke.”
The cuts, if enacted, would cancel $4 billion in unspent funding for the state’s high-speed rail project, which the White house called a “boondoggle,” and strip grants from the Fair Housing Advocates of Northern California, which the budget criticized for “actively working to dismantle systems of power and privilege that favor whiteness.”
Smaller items are also targeted on the White House’s chopping block: a Los Angeles gelato festival, a dance building in Santa Cruz — which the White House dubs “one of the richest cities in the nation” — and a $3-million grant for a playground tied to an unspecified performing arts center in California.
Trump’s proposed cuts to California projects are part of a broader effort by the Trump administration to reshape federal spending priorities, largely by trading social programs for a massive military buildup.
The president is asking Congress to approve $1.5 trillion for defense and to slash $73 billion from domestic programs, a massive restructuring that would leave states, including California, to absorb costs Washington no longer wants to carry.
Trump made that vision explicit at a private Easter lunch at the White House on Wednesday, telling guests that the federal government should no longer be responsible for funding social programs that many Americans rely on.
“We can’t take care of daycare. We are a big country,” Trump said. “We are fighting wars. We can’t take care of daycare.”
If states want to offer those services, Trump said, they should raise taxes to pay for them.
“Medicaid, Medicare, all these individual things, they can do it on a state basis,” he said. “We have to take care of one thing: military protection.”
His proposed budget reflects that priority, which lawmakers will need to contend with as they grapple with the mounting costs of the Iran war and an economic fallout from a military operation that has left Americans paying more items, including gas pump.
Under the proposed budget, Trump is also seeking to make some investments in California projects.
The White House, for example, is seeking $152 million from Congress to turn Alcatraz back into a maximum-security prison, an idea the president has talked about for several years.
He also called on Congress to establish a National Center for Warrior Independence at the West Los Angeles VA Medical Center.
Times staff writer Andrew Khouri, in Los Angeles, contributed to this report.
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