Federal Judge Blocks Trump Administration From Suspending LA Homelessness Funding

A federal judge on Thursday, August 13, 2026, temporarily blocked the Trump administration's move to suspend federal funding for homelessness programs in Los Angeles, ruling that the abrupt action would harm thousands of vulnerable residents. U.S. District Judge David O. Carter issued a preliminary injunction against the U.S. Department of Housing and Urban Development, finding the agency acted arbitrarily when it suspended the Los Angeles Homeless Services Authority from managing federal grants.

The ruling restores LAHSA's authority to apply for approximately $241 million in federal funding for the 2026 fiscal year, which supports 140 service providers across the region. HUD had suspended LAHSA on June 11, citing years of negative audits and allegations of fraud and financial mismanagement. The agency was set to lose its role as the master applicant for a critical funding application due on August 26, but a separate federal court ruling in Rhode Island on August 7 had already nullified that deadline.

In his order, Judge Carter wrote that while LAHSA may be dysfunctional, thousands of unhoused individuals rely on its services. He stated that the abrupt defunding would result in...