Los Angeles County’s new homeless services department is facing a staggering 25% budget cut, sparking urgent concern among service providers and community leaders. The proposed cuts, amounting to $219 million for the fiscal year 2026-2027, were announced on January 13, 2026, and are seen as “devastating” to efforts aimed at reducing homelessness in the region.
The anticipated funding shortfall comes as Measure A, a voter-approved half-cent sales tax intended to bolster homeless services, generates significantly less revenue than expected due to a downturn in consumer spending. Initially projected to raise $1.2 billion annually, recent estimates suggest it will yield just over $1 billion, leaving critical programs on the chopping block.
“The budget proposal is a slap in the face to those struggling with homelessness,” stated First District Supervisor Hilda Solis. “With a nearly $300 million deficit, this new department is in jeopardy, and the situation is only going to get tougher.”
Cuts will severely impact successful initiatives like the Pathway Homes program, which has successfully transitioned about 1,800 residents into housing since its inception in 2023. Under the new budget proposal, $92 million earmarked for this program could be slashed, drastically reducing the number of available hotel and motel beds for the unhoused.
Director Sarah Mahin confirmed that the budget revisions prioritize funding to maintain current housing placements, stating, “We are doing our best to keep people in housing today; we cannot afford to push them back onto the streets.” However, experts warn that without adequate resources to support outreach and housing initiatives, the progress made over the past two years could be undone.
The upcoming budget hearing on February 3, 2026, will determine the fate of these proposed cuts, which include eliminating over 30 programs aimed at providing essential services for the homeless. Third District Supervisor Lindsey Horvath praised Mahin’s efforts to reduce the budget deficit but acknowledged that the cuts will have dire consequences for vulnerable populations.
“It’s going to be catastrophic without funding,” expressed Georgia Hawley, chief communications officer at the Midnight Mission, emphasizing the human toll of these financial decisions. “Seven unhoused people die every day in L.A. If these cuts move forward, sadly, that number will grow.”
LA County’s homeless crisis continues to demand immediate, effective solutions. As the Board of Supervisors prepares to review the budget, advocacy groups are urging local leaders to seek alternative funding mechanisms to avoid crippling reductions in critical services. The situation remains dire, and stakeholders are calling for a concerted effort to ensure that homeless residents receive the support they need.
With the impending budget cuts looming, the urgency to act has never been more critical. The fate of thousands hangs in the balance as the county faces a pivotal moment in its battle against homelessness.
