UPDATE: Los Angeles County is facing a staggering 25% funding cut to its newly established homeless services department, threatening vital programs aimed at addressing the ongoing homeless crisis. Officials announced these cuts, amounting to $219 million, on January 13, 2026, citing decreased revenues and rising housing costs.
Just days before a critical budget hearing scheduled for February 3, 2026, stakeholders are voicing their alarm over the potential impacts of these reductions. The cuts come despite the implementation of Measure A, a voter-approved half-cent sales tax intended to bolster homelessness services, which is projected to generate around $1.2 billion annually but has fallen short with revenues now just over $1 billion.
The funding shortfall is forcing the Homeless Services & Housing Department (HSH) to prioritize existing shelter beds, leading to $92 million in proposed cuts to the county’s successful pathway homes program. This program has effectively transitioned nearly 1,800 individuals from encampments to stable housing since its inception in 2023.
“I am rather disgusted with the cutbacks,”
said First District Supervisor Hilda Solis, expressing her concerns about the implications of the budget proposal. She highlighted the urgency of maintaining funding for effective services that keep vulnerable individuals off the streets.
The reductions will impact several key programs, including community outreach teams that provide essential support and mental health services to the homeless population. Third District Supervisor Lindsey Horvath acknowledged the challenge of addressing the budget shortfall, noting that efforts to find efficiencies have only partially mitigated the funding gap.
Experts warn that these cuts will reverse progress made in reducing homelessness in the county, where the number of unsheltered individuals has decreased for two consecutive years. As Jerry Jones, executive director of the Greater Los Angeles Coalition on Homelessness, stated,
“If we take that much money out of homeless services, it will be devastating.”
With the next point-in-time homeless count scheduled for January 20-22, 2026, the community is bracing for potential setbacks in their efforts to reduce homelessness. The upcoming budget decisions will determine whether Los Angeles can sustain its current momentum or face a crisis exacerbated by funding cuts.
As the county navigates these financial challenges, local leaders are calling for a collaborative approach, urging cities and agencies to step up their efforts in tackling homelessness. Fourth District Supervisor Janice Hahn emphasized the need for shared responsibility, stating that cities must utilize their resources to support county initiatives.
As the budget hearing approaches, the urgency for immediate action is palpable. Georgia Hawley, chief communications officer for the Midnight Mission, warned,
“Seven unhoused people die every day in L.A. If these cuts move forward, sadly, that number will grow.”
The future of homeless services in Los Angeles hangs in the balance as officials prepare to make crucial decisions that will impact thousands of lives.
