URGENT UPDATE: Los Angeles County’s newly established Homeless Services & Housing Department is facing a staggering $219 million funding cut for the fiscal year 2026-2027. This drastic reduction has been confirmed just days before a critical budget hearing set for February 3, 2026, alarming officials and advocates working to combat the homelessness crisis.
The funding drop is primarily attributed to a significant decline in revenues from Measure A, a recently approved half-cent sales tax aimed at alleviating homelessness. Initial projections indicated the measure would generate approximately $1.2 billion annually, but current estimates suggest a shortfall of about $200 million due to reduced consumer spending.
Supervisor Hilda Solis expressed her dismay over the proposed cuts, stating, “I am rather disgusted with the cutbacks. It is a new department with a $300 million deficit. And I know it is going to get tougher.” This sentiment echoes the concerns of many advocates who fear these reductions will severely hamper progress in reducing homelessness.
The budget slashes will significantly impact successful programs, including community outreach teams and the Pathway Homes initiative, which has successfully placed approximately 1,800 residents into housing since its inception. Experts warn that without sufficient funding, breaking up homeless encampments will be virtually impossible.
HSH Director Sarah Mahin indicated that prioritizing existing housing arrangements is necessary to prevent further displacement of unhoused individuals. “We prioritized the housing we have that is keeping people in housing today,” Mahin stated during an interview. However, this approach necessitates cutting back on essential services that help individuals transition from the streets to stable housing.
Despite the grim outlook, Mahin managed to reduce the budget shortfall from $303 million to $219 million by securing a one-time state grant of $39 million and by eliminating service duplications. Still, nonprofit organizations warn that these cuts will reverse hard-won gains in addressing homelessness.
Jerry Jones, executive director of the Greater Los Angeles Coalition on Homelessness, stated, “We don’t think that is a reasonable public policy.” He noted that the proposed cuts amount to nearly 25% of the budget, jeopardizing over 30 programs.
The urgency of this situation cannot be overstated; as Georgia Hawley from the Midnight Mission expressed, “Seven unhoused people die every day in L.A. If these cuts move forward, sadly, that number will grow.”
As the budget hearing approaches, the pressure mounts on local leaders to find a solution. The county’s budget totals $52.5 billion, and many advocates believe there is sufficient funding to fully support homeless services without compromising other essential areas.
With the homeless count scheduled for January 20-22, 2026, the implications of these cuts will be scrutinized closely. As the situation continues to develop, Los Angeles County residents and officials alike are urged to stay informed and advocate for the vulnerable populations affected by these critical funding decisions.
Stay tuned for more updates as this urgent story unfolds.
