Pasadena's Union Station Homeless Services has already lost 20% of its federal funding after the Trump administration suspended grants to the Los Angeles Homeless Services Authority, according to Pasadena Now. LAHSA is the regional agency that channels HUD dollars to local providers serving unsheltered residents.
LAHSA filed a federal lawsuit and an emergency request for a temporary restraining order on Tuesday, June 30, seeking to block the U.S. Department of Housing and Urban Development from cutting off funds while the dispute plays out in court. As of publication, no ruling on the restraining order has been announced.
The funding freeze threatens housing and services for more than 11,000 people across Los Angeles County, including 1,900 children, according to LAHSA's court filing.
"We are taking this step to protect formerly unhoused people who found a permanent home," LAHSA interim CEO Gita O'Neill said.
How it started
HUD Deputy Secretary Andrew D. Hughes signed a suspension letter on Thursday, June 11, barring LAHSA from applying for or receiving federal funds. HUD Secretary Scott Turner cited allegations of fraud, financial mismanagement, and a lack of safeguards against conflicts of interest. A HUD spokesperson called LAHSA "one of the country's most egregious abusers of taxpayer dollars."
LAHSA, which secured $220 million in federal funds for local agencies in 2024 and $944 million since 2021, pushed back in a 46-page complaint. The lawsuit alleges HUD improperly attributed a failure to spend more than $500 million in homeless services funding to LAHSA when the source document does not mention the agency. LAHSA also accused HUD of conflating informal reviews and media statements with formal audits.
The agency's lawyers framed the suspension as part of a broader political effort to dismantle the federally approved Continuum of Care system in favor of policies emphasizing criminal enforcement and institutionalization, according to the Los Angeles Times.
Separate federal ruling the same day
On the same day LAHSA filed suit, U.S. District Judge Mary S. McElroy in Rhode Island struck down HUD's changes to the $4.04 billion Continuum of Care Program for fiscal year 2025, calling them "arbitrary and capricious," according to Politico. McElroy, a Trump appointee, found HUD failed to consider the harm caused by funding gaps when it tried to eliminate the Housing First approach on an accelerated timeline.
What it means for Pasadena
Federal funding comprises about 8% of LAHSA's overall budget, according to The Guardian, but those dollars flow directly to frontline providers like Union Station that serve Pasadena's unsheltered residents. The cuts come even as the region was showing progress: LAHSA's 2025 point-in-time count showed unsheltered homelessness in L.A. County declined 9.5% compared to the prior year.
The City Council's Housing, Homelessness and Planning Committee, chaired by Mayor Victor Gordo, is scheduled to meet Wednesday, July 1, at 4:30 p.m. at Pasadena City Hall, 100 N. Garfield Ave.
