UPDATE: Los Angeles County’s newly formed homeless services department is facing a staggering 25% funding cut, amounting to $219 million for the fiscal year 2026-2027. This urgent announcement, made on January 13, 2026, has alarmed social service providers and advocates who warn that these cuts will severely impact efforts to reduce homelessness across the region.
With revenues falling short due to decreased consumer spending and cuts in state and federal funds, the county’s efforts to tackle the homelessness crisis are now in jeopardy. Hilda Solis, First District L.A. County Supervisor, expressed her outrage, stating, “I am rather disgusted with the cutbacks. It is a new department with (close to) a $300 million deficit. And I know it is going to get tougher.”
The budget reductions will force the county’s Homeless Services & Housing Department (HSH) to prioritize existing funding for those currently in shelters and permanent housing, significantly diminishing outreach programs that have been crucial for helping vulnerable individuals. According to Sarah Mahin, HSH Director, this shift means $92 million will be cut from the successful Pathway Homes program, which has successfully transitioned individuals from outdoor encampments into stable housing.
“The cuts will lead to catastrophic outcomes,” warns Saundra Macpherson, a homeless individual in Pacoima. “I know 20 people who have been housed; this funding is vital to keep them off the streets.” Since its inception in 2023, the Pathway Homes program has helped approximately 1,800 residents find housing, with 450 now permanently housed.
In response to the crisis, Measure A, a recent half-cent sales tax approved by voters, was expected to generate $1.2 billion annually for homeless services. However, recent estimates indicate only $1 billion will be available, leading to further budget shortfalls. The county’s reliance on this funding has proven problematic, as it now faces a deficit while attempting to maintain essential services.
Third District Supervisor Lindsey Horvath highlighted the challenges, noting that while Mahin has made commendable efforts to trim the deficit from $303 million to $219 million, significant cuts to outreach and support services remain. “We don’t think that’s a reasonable public policy,” said Jerry Jones, executive director of the Greater Los Angeles Coalition on Homelessness. “Across various organizations, there is a sense of alarm.”
The implications of these cuts are dire, with experts predicting that the number of unsheltered individuals could rise again if funding is slashed. As the county prepares for a budget hearing on February 3, 2026, officials are under pressure to find solutions to this critical funding gap.
“Seven unhoused people die every day in L.A.,” warns Georgia Hawley, chief communications officer with the Midnight Mission. “If these cuts move forward, sadly, that number will grow.”
The budget decisions made in the coming weeks will not only impact the current homeless population but also determine the trajectory of Los Angeles County’s fight against homelessness. As the deadline looms, the community anxiously awaits the outcome of the upcoming board meeting, hoping for a reversal of these devastating cuts.
