Federal Judge Blocks HUD Takeover of Los Angeles Homelessness Funding

Aug. 13, 2026 — A federal judge has temporarily blocked the Trump administration’s attempt to take control of federal homelessness funding in Los Angeles County. U.S. District Judge David O. Carter issued a preliminary injunction finding that the U.S. Department of Housing and Urban Development (HUD) acted arbitrarily and capriciously when it suspended the Los Angeles Homeless Services Authority (LAHSA) from managing federal homelessness funds. The suspension had threatened approximately $240 million intended for 140 homeless-service providers. Judge Carter ordered HUD to restore LAHSA as the master applicant for the federal funding while the legal case continues, with a trial scheduled for February.

The ruling, however, does not mean that LAHSA’s future is secure. Judge Carter has been highly critical of LAHSA’s financial management and ordered the Los Angeles Continuum of Care to examine whether another agency could assume LAHSA’s federally required responsibilities, including administering federal grants, maintaining the homeless-services database and conducting the annual homeless count. Both the City of Los Angeles and Los Angeles County have indicated that they could potentially assume some or all of those responsibilities. The ruling therefore protects the immediate flow of federal homelessness funding while leaving open the possibility of significant changes to how those funds and programs are managed in the future.

For the Los Angeles House of Ruth (LAHR), the decision is particularly important because LAHR provides shelter, transitional housing, case management and permanent-housing assistance to homeless families, many of whom are fleeing domestic violence. LAHR works within the Los Angeles homelessness system and has previously partnered with LAHSA on federal funding for domestic-violence survivors. In 2025, for example, LAHSA announced federal funding for new programs developed in partnership with the Los Angeles House of Ruth and other organizations to help domestic-violence survivors obtain housing and safety. The court’s decision therefore helps protect the funding structure that supports organizations like LAHR and reduces the immediate risk of an abrupt interruption in services.

At the same time, the House of Ruth and other service providers should not assume that the funding issue is permanently resolved. Judge Carter’s order makes clear that the larger question of who should manage Los Angeles’ federally funded homelessness system remains unsettled. For LAHR, a stable transition is critical because interruptions in funding could directly affect the shelter and support services provided to vulnerable women, children and families. LAHR currently serves families through emergency and transitional shelter, helps them move into permanent housing, and continues to support families after they leave its programs. The ruling provides important short-term protection, but the coming months will be significant as Los Angeles determines whether LAHSA remains in its current role or whether responsibilities shift to the City, County or another entity.

The summary above is based on an article by Doug Smith with Times staff writer David Zahniser contributing. All wording used here is shared with the permission of the writer. The full Los Angeles Times article can be found here.