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California cuts $5 Million in homelessness prevention funds as crisis grows

Jacob Shelton April 16, 2025

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Harold Hicks, who is homeless, rests at the Barton Springs Pool spillway on Tuesday April 30, 2024, with his only remaining belongings - a bicycle, blankets and two backpacks - the day after a police officer took almost all of his belongings.

Los Angeles, California – The Los Angeles County Board of Supervisors voted on Tuesday to make significant cuts to several homelessness service programs, including those aimed at preventing homelessness, in an effort to balance the budget for the upcoming fiscal year.

The cuts come after the board approved a $908 million homelessness funding package last month for the fiscal year beginning July 1. However, to address a projected budget deficit and increased service costs, the supervisors decided to reduce funding for a variety of homelessness-related initiatives.

Among the cuts, $5 million in county funding was eliminated from a program that works with landlords to secure housing for the homeless, run by the Los Angeles Homeless Services Authority (LAHSA). In addition, the Department of Health Services’ shelter budget was slashed by $3.9 million, and $507,000 was cut from a program aimed at helping unhoused individuals clear their criminal records. While some funding for homelessness prevention programs was trimmed, these programs were not completely eliminated. Instead of cutting $26 million from prevention programs, the supervisors opted for a $16 million reduction. These programs will now be funded at just 25% of last year’s levels.

Supervisor Holly Mitchell described the cuts as a necessary step to ensure that critical services could be maintained within a strained budget. “I think this is a more appropriate first step at trying to make sure that we keep these critical services,” she said during Tuesday’s meeting.

The cuts come as part of a broader reallocation of funds, with Measure A — a new sales tax passed by voters — expected to generate over $1 billion annually for affordable housing. However, much of this funding is earmarked for new initiatives, including a county agency dedicated to affordable housing, rather than directly for homelessness services.

Supervisor Lindsey Horvath raised concerns about shifting the prevention work to the new L.A. County Affordable Housing Solutions Agency (LACAHSA), noting that the agency is not legally authorized to take over prevention funding entirely. Horvath proposed a motion to restore full funding to prevention programs, but it was unsuccessful. She pledged to continue advocating for the restoration of these essential services.

Board Chair Kathryn Barger acknowledged the need for cuts but emphasized the importance of protecting funding for the most vulnerable populations, particularly youth at high risk of becoming homeless. “This restoration is about protecting our most vulnerable youth and ensuring we don’t let up on the progress we’ve made to prevent homelessness before it begins,” Barger said in a statement.

The board directed county staff to report back with additional ideas for restoring more funding to homelessness prevention efforts.

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