Los Angeles city and county officials are locked in a dispute over control of more than $240 million in federal funding designed to address homelessness, following recent concerns about rising homeless numbers despite substantial taxpayer investments.

The conflict emerged after the federal government, under the Trump administration, threatened to remove the Los Angeles Homeless Services Authority (LAHSA) from its role managing the region’s Continuum of Care grant. This grant supports permanent supportive housing, street outreach, and other homelessness programs. Federal authorities alleged fraud and financial mismanagement within LAHSA.

Last year, the Los Angeles area received approximately $240 million in Continuum of Care funds—the largest such grant awarded nationwide. Mayor Karen Bass and City Council President Marqueece Harris-Dawson argued in a letter that the funding should be directed straight to the city, citing that Los Angeles contains the largest portion of the county’s homeless population.

Conversely, the county government has asserted that it should oversee the funds and manage the associated programs. County officials contend they possess the necessary staff, expertise, and experience handling significant federal grants. Currently, the county oversees programs delivering permanent supportive housing to more than 30,000 individuals, including more than 11,000 people currently housed.

County representatives warn that delays in resolving the funding management could endanger federal support and disrupt critical services aimed at maintaining housing stability for vulnerable populations.

The dispute highlights ongoing challenges in coordinating homelessness response efforts in the greater Los Angeles area, as both city and county officials seek greater authority and responsibility over federal resources intended to combat the housing crisis.