Homelessness has declined in LA County. Funding cuts threaten that progress

LOS ANGELES — There's a long way to go, but the Los Angeles area appears to be making progress in its fight against homelessness.

In the city, data show homeless people are moving into new permanent supportive housing faster. Countywide, there were 14% fewer people living on the streets than two years earlier, according to the 2025 count.

Future progress could be much tougher, due in large part to a slowing economy that is reducing funding for homeless-services and programs.

"Homelessness is an issue that responds well to strategic investment over time," said John Maceri, chief executive of the nonprofit The People Concern. "And what we are seeing now is we are digressing."

The current funding picture comes after years of increased public investment that officials have attributed to recent declines in homelessness. And surprisingly, it comes nearly a year after L.A. County residents voted to significantly increase their contribution to the cause.

In November, voters approved Measure A, a half-cent tax to fight homelessness, which was an increase from the previous quarter-cent levy.

But much of the additional tax hike is dedicated to building affordable housing, which takes time, while the sales tax percentage flowing to the county for core homeless services has remained largely the same.

As a result, officials have said that although more total money is being raised, the county has less funds available for things such as job training, outreach and landlord incentives as the economy slows and consumers spend less. Add on top of that state budget cuts and expected reductions from the federal government, and officials and nonprofit providers say you have a perfect storm.

"We are seeing a cliff," said Maceri, whose organization has laid off 22 workers because of the reductions.

In a June report, the Los Angeles Homeless Services Authority, a joint city-county agency, highlighted nearly $92.7 million in budget cuts this fiscal year that included reductions for rental subsidies and drop-in centers that help homeless people access services.

Tax revenue collected for homeless services is expected to fall again next year, all the while the cost of providing those services increases.

On Tuesday, Sarah Mahin, the director of a new county homelessness department that will take over many of LAHSA's responsibilities next year, told the Board of Supervisors that, given the combination of cuts, the "region must make very hard choices about how we invest our limited resources" and the department is working "hard with our partners to identify the best path forward."

This year's reduction in funding is already having an effect, according to providers.

Among the major programs hit is a program called time-limited subsidies, which is designed to pay rental subsidies for up to two years so that formerly homeless people can live in an apartment while working to find a job or more permanent subsidy program.

Due to a reduction in state money, nonprofits that use the subsidies to house people cannot accept new applicants.

Some service providers have reported that the decision is backing up the system, with people staying in shelters longer. With less room in shelters, others must stay on the streets longer.

So far, the county is on track to meet one its major goals for Measure A, which is for unsheltered homelessness to fall 30% from 2024 to 2030.

Nonprofit leaders said funding cuts will make meeting that metric difficult.

"The likelihood we are going to be able to house you at this moment is challenging," said Ryan J. Smith, chief executive of the St. Joseph Center.

Maceri said the additional Measure A funding that is flowing to build new permanent, affordable housing is crucial in the long run, but so is investment in services that help move people off the street in the near term and eventually into that permanent housing.

"We can't keep driving huge numbers in reduction when the resources that drive that reduction are substantially diminished," Maceri said.

To fix that, Maceri called for more funding from the state or federal government, but getting it could be a long shot.

The state government has cut homelessness spending amid budget constraints in recent years, while there's been growing concern among the public — and some elected officials — that the money that has been spent hasn't translated into enough progress.

On the federal level, the Trump administration wants to end funding for homeless-specific programs that seek to house people first and then address other issues such as drug addiction or mental health, a policy the county considers a cornerstone of its approach and one first adopted federally by President George W. Bush.

In addition, the administration is seeking to reduce funding that local governments receive for public housing and to administer the nation's general housing voucher program, which helps millions of Americans afford the rent to private landlords.

"I have been in this industry for over 35 years and certainly have seen my share of challenges as it relates to funding or policy shifts," Emilio Salas, executive director of the county department that oversees public housing and vouchers, told the Board of Supervisors on Tuesday. "But I've never experienced this level of impact as it relates to pressures coming from all sides of the housing ecosystem."