UPDATE: Los Angeles County’s newly established homeless services department is facing an alarming $219 million cut in its budget for the fiscal year 2026-2027, threatening vital programs aimed at alleviating the county’s homelessness crisis. This drastic reduction, revealed on January 13, 2026, is attributed to a significant downturn in consumer spending and subsequent lower revenue from the recently implemented Measure A sales tax.
Officials report that the anticipated funds from Measure A, which was expected to generate $1.2 billion annually, have dwindled to just over $1 billion, leaving the county’s Homeless Services & Housing Department (HSH) with a budget deficit of nearly $300 million. The cutbacks will severely impact successful initiatives like community outreach teams and the pathway homes program, which has already helped 1,800 residents transition into housing.
First District Supervisor Hilda Solis expressed her outrage, stating, “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.” HSH Director Sarah Mahin clarified that the focus will shift to maintaining current housing for those already sheltered, further diminishing the resources available for new homeless individuals.
The proposed cuts include $92 million from the pathway homes program, which has been instrumental in moving individuals from encampments into hotel accommodations. “Breaking up encampments will not be possible if there are no beds for the homeless residents,” experts warn, stressing the dire consequences of these reductions.
The pathway homes initiative, launched in 2023 in response to Mayor Karen Bass’s Inside Safe program, has proven effective, transitioning 450 individuals into permanent homes. “We know it works. We are shooting ourselves in the foot by reducing those services,” Solis lamented.
As the situation escalates, Jerry Jones, executive director of the Greater Los Angeles Coalition on Homelessness, emphasized the growing alarm among service providers. “If we take that much money out of homeless services, it will be devastating,” he stated, highlighting concerns that these funding cuts could reverse progress made over the past two years.
The upcoming budget hearing on February 3, 2026, will address these critical cuts, but the implications are already being felt across the community. 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.”
Additionally, Supervisor Lindsey Horvath, who spearheaded the creation of the new department, noted that while Mahin managed to reduce the budget shortfall by securing a $39 million state grant, the overall impact of the proposed cuts remains alarming.
With the homeless count scheduled for January 20-22, 2026, the urgency to address funding and resources is more pressing than ever. Nonprofits and community organizations are bracing for a potential setback in their efforts to combat homelessness.
The stark reality remains: without immediate action and restoration of funding, the progress made in reducing homelessness in Los Angeles County could be jeopardized, putting thousands at risk of returning to the streets. This developing situation requires urgent attention from all levels of government and community stakeholders to ensure that vital services continue to operate and expand.
