UPDATE: Los Angeles County is facing a shocking 25% budget cut to its newly established homeless services department, jeopardizing critical programs aimed at alleviating the ongoing homeless crisis. The proposed cuts, totaling $219 million for the fiscal year 2026-2027, were announced on January 13 and have alarmed advocates and officials alike.
This drastic reduction comes as the county grapples with unexpected revenue shortfalls, including declining consumer spending affecting Measure A funds, alongside significant cuts in federal and state aid. Hilda Solis, First District Supervisor, expressed her outrage: “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.”
The cuts could dismantle some of the most successful initiatives, such as community outreach teams and the pathway homes program, which has successfully transitioned 1,800 residents from encampments into stable housing since its inception in 2023. “We are shooting ourselves in the foot by reducing those services,” Solis emphasized.
Sarah Mahin, Director of the Homeless Services & Housing Department, stated that the budget must prioritize maintaining existing housing placements, limiting funds available for new initiatives. “We prioritized the housing we have that is keeping people in housing today,” Mahin explained. The proposed cuts include a staggering $92 million reduction to the pathway homes program, which is pivotal for providing shelter options.
Advocates warn that these funding reductions could reverse the progress made in reducing homelessness throughout the county. Jerry Jones, executive director of the Greater Los Angeles Coalition on Homelessness, highlighted the potential for devastating consequences: “If we take that much money out of homeless services, it will be catastrophic.”
The budget crisis follows the implementation of Measure A, a half-cent sales tax passed by voters in November 2024, expected to generate $1.2 billion annually. However, current projections indicate a revenue drop to just over $1 billion, largely due to reduced consumer spending.
The upcoming budget hearing on February 3, 2026, will be a critical moment for LA County’s homeless services. As Georgia Hawley from the Midnight Mission pointed out, “Seven unhoused people die every day in L.A. If these cuts move forward, sadly, that number will grow.”
With emerging details about the budget cuts, pressure is mounting on local governments to step up their support for homeless services. Fourth District Supervisor Janice Hahn stressed that cities must enhance their efforts to address the homelessness crisis. “Cities will be getting a lot of money for homelessness. They need to step up,” she said.
As the situation develops, stakeholders are calling for immediate action to protect vulnerable populations from the impacts of these budget cuts. The urgency of the matter cannot be understated, as the lives of countless individuals depend on the availability of critical homeless services.
Stay tuned for updates as LA County navigates this pressing issue.
