UPDATE: Los Angeles County’s newly established homeless services department is facing devastating funding cuts of 25%, slashing nearly $219 million from its budget for fiscal year 2026-2027. This alarming announcement was made during a budget proposal hearing on January 13, and officials are warning that the impacts could be catastrophic for the county’s ongoing efforts to combat homelessness.
The anticipated cuts stem from a significant decline in revenue generated by Measure A, a new half-cent sales tax approved by voters in November 2024. Initial projections estimated over $1 billion in annual revenue, but due to reduced consumer spending, this figure has fallen to just over $800 million. Coupled with deep reductions in state and federal funding, the budget deficit has skyrocketed, prompting drastic measures.
Hilda Solis, First District L.A. County Supervisor, expressed her outrage at the proposed cuts, 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 proposed budget reductions will jeopardize vital programs like community outreach teams and the successful pathway homes initiative, which has helped approximately 1,800 residents transition into housing since its inception in 2023.
Director of the Homeless Services & Housing Department, Sarah Mahin, explained the need to prioritize existing housing solutions to prevent more individuals from becoming homeless. “We prioritized the housing we have that is keeping people in housing today,” Mahin stated. However, a proposed $92 million cut to the pathway homes program will significantly reduce the number of available hotel and motel beds, and experts warn this could halt progress in breaking up encampments.
The upcoming budget hearing before the LA County Board of Supervisors on February 3, 2026, will be critical as community leaders and advocates raise alarms about the potential fallout from these cuts. Jerry Jones, executive director of the Greater Los Angeles Coalition on Homelessness, emphasized the dire situation, stating, “If we take that much money out of homeless services, it will be devastating.”
The effects of these funding cuts extend beyond mere statistics; for individuals like Saundra Macpherson, who has experienced homelessness firsthand, the implications are personal. “It’s going to be catastrophic without funding,” she shared, highlighting the human toll of budget decisions.
As the county grapples with this crisis, community leaders urge cities to step up their efforts to provide essential services. Janice Hahn, Fourth District Supervisor, stressed, “Cities will be getting a lot of money for homelessness. They need to step up. This should be a shared responsibility.”
The next count of homeless individuals in Los Angeles is scheduled to take place from January 20 to January 22, where volunteers will assess the current state of homelessness, excluding areas with separate counts like Long Beach and Pasadena.
With seven unhoused individuals dying every day in Los Angeles, the urgency for action has never been greater. As stakeholders prepare for the upcoming budget meeting, the community watches closely, understanding that the decisions made will have profound implications on the future of homeless services in the region.
Stay tuned for updates as this story develops.
