UPDATE: Urgent funding cuts are threatening Los Angeles County’s newly established Homeless Services Department, with a staggering 25% reduction in services proposed for fiscal year 2026-2027. Officials announced that the department is facing a proposed budget cut of $219 million, which providers describe as “devastating.”
The anticipated cuts stem from a significant drop in revenues linked to decreased consumer spending and a reduction in state and federal funding. These funding challenges come despite the county’s recent efforts to tackle its homelessness crisis, which included new funds from the Measure A sales tax, designed to raise $1.2 billion annually for homeless services. However, current projections suggest revenues will fall short by $200 million, generating just over $1 billion.
First District Supervisor Hilda Solis expressed her outrage, stating, “I am rather disgusted with the cutbacks… It is a new department with a $300 million deficit.” The cuts may significantly impact successful programs, including community outreach teams and the pathway homes initiative, which has successfully transitioned many individuals from encampments into stable housing.
The Director of Homeless Services, Sarah Mahin, emphasized the prioritization of existing housing that keeps individuals off the streets. “We prioritized the housing we have that is keeping people in housing today,” Mahin explained in an interview. Nonetheless, the proposed cuts threaten to drastically reduce the number of available hotel and motel beds for the unhoused, with a potential $92 million reduction specifically targeting the pathway homes program.
Since its inception in 2023, this program has successfully housed about 1,800 residents, with 450 now permanently housed. However, experts caution that without sufficient funding, the county will struggle to maintain these gains. Jerry Jones, executive director of the Greater Los Angeles Coalition on Homelessness, voiced alarm, stating, “If we take that much money out of homeless services, it will be devastating.”
The Board of Supervisors is scheduled to address these budget cuts on February 3, 2026, during a crucial hearing. As Los Angeles grapples with a growing homelessness crisis—where seven unhoused individuals die daily—the urgency for solutions has never been more critical.
Third District Supervisor Lindsey Horvath acknowledged some progress, noting that Mahin had managed to reduce the budget shortfall from $303 million to $219 million through various efficiencies. Yet, despite these efforts, reductions will significantly hinder the momentum gained in recent years, as the number of unsheltered individuals had previously declined for two consecutive years.
As calls for action grow louder, the community is urged to advocate for maintaining essential services. The upcoming budget hearing on February 3 will be pivotal in determining the future of LA County’s homeless services and, ultimately, the lives of thousands of vulnerable residents.
In a city where the stakes continue to rise, the implications of these cuts could ripple throughout the community, emphasizing the urgent need for effective and sustained support to combat homelessness in Los Angeles.
