Expected loss of federal funds could push thousands of L.A. County households into homelessness

"Local officials are warning that more than 14,500 L.A. County formerly homeless households in subsidized, permanent housing could be forced back onto the streets or into shelters over the next year, mostly because of a loss of federal funding. The predicted displacement would wipe away the slight reduction in the local homeless population since 2023 and is setting off a scramble by nonprofits and local government officials to try to blunt the potential effects."

""This is not a normal moment and we cannot treat it like it's a normal moment," said Los Angeles City Councilwoman Nithya Raman, who chairs the council's housing and homelessness committee. "There is a potential for the entire homeless services system that we have built up here to fall apart.""

"About 3,500 of those households are at risk mostly because of state funding cuts, LAHSA said, and an additional 6,000 households could lose housing because a federal emergency housing voucher program, launched during the pandemic, is set to expire next year, four years ahead of schedule."

More than 14,500 L.A. County households in subsidized permanent housing face displacement next year due to federal and state budget cuts. Approximately 3,500 households are primarily at risk from state funding reductions. An additional 6,000 households could lose housing when a federal emergency housing voucher program launched during the pandemic expires next year, four years earlier than planned. Between 5,000 and 7,000 more households could lose rent assistance tied to the federal Continuum of Care program. Local governments and nonprofits are exploring use of local funds, including Measure A revenue, to prevent a new surge in homelessness.

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