The Los Angeles Homeless Services Authority Commission recently gave a unanimous green light to a $496 million budget for the 2026-27 fiscal year. This figure represents a significant drop from previous spending levels as the agency grapples with a growing unhoused population in the region.
The 40% drop from $829 million
The Los Angeles Homeless Services Authority (LAHSA) is entering the 2026-27 fiscal year with a budget of $496 million , according to the report. This is a stark contrast to the $829 million approved for the previous year, marking a 40% reduction in available resources for an agency tasked with providing housing, healthcare, and support services.
This financial contraction comes at a time when the Los Angeles Homeless Services Authority is seeing an increase in the number of unhoused individuals. This creates a dangerous scissors effect where the need for critical social services is rising while the capital required to provide them is shrinking rapidly.
Why the City of L.A. now provides 73% of funding
A primary driver of this shortfall is the decision by L.A. County to distance itself from the agency. As reported, the Los Angeles Homeless Services Authority is now 73% funded by the city of L.A., shifting the vast majority of the financial weight of the crisis onto municipal shoulders.
This shift mirrors a broader trend of jurisdictional friction in large metropolitan areas where city and county governments clash over the funding and administration of social safety nets. By moving away from the agency, L.A. County is effectively altering the collaborative nature of the regional response to homelessness, leaving the city of L.A. to shoulder a disproportionate share of the burden.
Mayor Karen Bass and the 10-member commission
The governance of the Los Angeles Homeless Services Authority remains centralized, with a 10-member commission overseeing operations. Half of these members are appointed by L.A. Mayor Karen Bass, meaning the city's executive leadership has significant influence over how the remaining $496 million is deployed across the region.
Despite the unanimous budget approval,the report notes that the agency is currently "fighting for survival." This suggests that the current funding level may be insufficient to maintain basic operations,let alone expand services to meet the growing demand for healthcare and permanent housing.
What the $496 million budget omits regarding rising numbers
Several critical gaps remain in the current financial picture provided by the agency. It is unclear exactly which specific services—whether permanent supportive housing or immediate healthcare—will be scaled back to accommodate the 40% budget cut. furthermore,while the report mentions "fewer dollars from the state," it does not specify the exact amount of funding the state of California has withdrawn, leaving the total loss of state support an open question.
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