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The White House has issued a scathing message to Los Angeles as itpulled the plug on fundingfor the city’s largest homeless agency.
Thenewly created Task Force to Eliminate Fraud, led by Vice President JD Vance, said “the fraud and corruption ends today” as it wiped out federalcash flow to Los Angeles Homeless Services Authority.
In a post on X, its executive director Scott Brady added: “For years American taxpayers have been sending billions to Los Angeles. The result? Fraud and corruption.”
The Trump administration accused the agency of “wanton mismanagement” after nearly $1 billion in federal money flowed to the organization since 2021.
The Department of Housing and Urban Development, which is part of the task force, informed LAHSA leadership Thursday it was immediately suspending the agency’s participation in federal programs while HUD’s inspector general investigates potential misconduct involving the agency and its leadership.
In a letter obtained by Fox News, HUD accused LAHSA of “obvious fraud” and repeated failures to protect taxpayer dollars.
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The agency cited allegations involving conflicts of interest, financial mismanagement, lack of oversight and concerns about how federal homelessness funding was administered.
HUD noted LAHSA has received nearly $1 billion in federal funding since 2021 and argued that the agency’s failures have become too severe to ignore.
Source: California Post – Breaking California News, Photos & Videos
