Karen Bass dealt embarrassing blow as Trump cuts funding to LA homelessness agency

The Trump administration has suspended federal funding to Los Angeles' homelessness agency, delivering a major setback to Karen Bass' handling of the crisis. The Department of Housing and Urban Development accused the Los Angeles Homeless Services Authority of "obvious fraud.” Federal officials said the agency is now under investigation, with funding frozen while inspectors review its conduct and leadership. The move places one of America's largest homelessness bureaucracies under intense scrutiny after receiving nearly $1 billion in federal funding since 2021. The funding freeze comes as Bass faces growing pressure over the homelessness crisis which still affects more than 72,000 people across Los Angeles.