FOR IMMEDIATE RELEASE
August 13, 2026
Federal Court Issues Injunction Halting HUD’s Illegal Suspension of LAHSA, Protecting Critical Homelessness Resources for Los Angeles
U.S. District Court Restores LAHSA as Collaborative Applicant and Requires Execution of Already-Awarded 2025 Grants, Pointing to a Pattern of Unlawful Agency Actions
LOS ANGELES, CA — Today, the United States District Court for the Central District of California issued a preliminary injunction in LAHSA v. Trump et al., granting temporary relief and halting the U.S. Department of Housing and Urban Development’s (HUD) abrupt, illegal suspension of the Los Angeles Homeless Services Authority (LAHSA) and remedial measures against the Los Angeles Continuum of Care (LA CoC).
The ruling by Judge David O. Carter found that HUD’s sudden move to suspend LAHSA weeks before federal Continuum of Care (CoC) Notice of Funding Opportunity (NOFO) grant deadlines was "arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law" under the Administrative Procedure Act (APA). The Court emphasized that HUD’s attempt to bypass local planning and instead usurp authority to set funding priorities for the Los Angeles region violated clear Congressional mandates under the HEARTH Act, which intentionally places local homelessness strategy and prioritization in the hands of regional communities through the CoC system.
LAHSA and the LA CoC Board applaud Judge Carter’s decision to restore LAHSA’s standing and affirm the LA CoC’s authority, which ensures that regional funding allocation remains aligned with the community’s locally established homeless housing priorities, performance metrics, and gap analyses rather than top-down federal mandates
"Today's ruling protects our community’s ability to secure funding for housing and services that save lives. LA CoC has proven itself as a collaborative, functional part of the homelessness response system., which HUD has been trying to destabilize to further its own priorities” said Ben Kay, Chair of the LA CoC Board. “Today the Court rejected those attempts and affirmed what the CoC has always believed: the people closest to this crisis are best equipped to solve it. Congress built this system so local communities — not Washington — would set these priorities. This is a win for the people of Los Angeles and for every person who depends on this system to stay housed."
A Growing Pattern of Unlawful Agency Overreach
Judge Carter’s order comes just six days after a separate landmark federal court ruling in Rhode Island (Washington v. HUD), which similarly invalidated HUD’s nationwide Fiscal Year 2026 NOFO under the APA. In that case, the U.S. District Court in Rhode Island struck down HUD’s attempts to unilaterally rewrite federal funding criteria, cut permanent housing grants, and penalize jurisdictions adhering to evidence-based best practices.
"Today’s ruling is a vital victory for our unhoused neighbors, our dedicated service provider network, and the entire Los Angeles region," said Gita O'Neill, Interim CEO of LAHSA. "By halting this abrupt suspension, the Court has ensured that life-saving housing and shelter programs remain operational without catastrophic disruption. LAHSA remains fully focused on supporting our service providers, and advancing transparent, accountable regional coordination."
"This ruling means Los Angeles can keep its promise to the more than 11,000 people — veterans, seniors, families with children — whose housing depends on these funds across 85 cities in our region," said Stephanie Graves, Chair of the LAHSA Commission. "The ruling ensures the funds awarded to Los Angeles for the 2025 grant cycle will flow to providers, and that decisions for the 2026 NOFO will be made according to priorities set here, by the people who know our communities best. As I begin my term as Chair, I want to be direct with Angelenos: the court has called for transparency and accountability, and we intend to deliver both. Every dollar will be tracked, accounted for, and put to work housing our neighbors. Los Angeles will make the most of this moment — and of every dollar entrusted to us."
Key Outcomes of the District Court Order
Judge Carter’s order had several outcomes that will have immediate and long-term implications for the Los Angeles CoC:
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Release of FY 2025 Grants: HUD has been ordered to immediately execute all pending grant agreements for approved FY 2025 awards, ending administrative delays that have left local service providers without needed operating funds.
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Restoration of Regional CoC Application Authority: LAHSA is restored as the Collaborative Applicant for FY 2026, enabling the LA CoC to submit its regional application and fairly compete for nationwide federal homelessness grants, in the event HUD issues a new NOFO after its proposed 2026 application was invalidated last week by the ruling in Rhode Island.
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Preservation of Essential Data Systems: LAHSA will continue operating the region’s mandatory infrastructure, including the Homeless Management Information System (HMIS), the Coordinated Entry System (CES), and the Point-in-Time (PIT) Count, ensuring continuous client matching and housing placement.
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Regional Solicitation for FY 2027: To uphold long-term governance integrity and federal compliance, the LA CoC will issue an immediate public solicitation for entities applying to serve as Collaborative Applicant, HMIS Lead, CES Coordinator, and PIT Count Administrator for Fiscal Year 2027. The LA CoC will submit its evaluation report of applicants to the Court by October 13, 2026.
"HUD’s decision to issue a sweeping, immediate suspension on the eve of critical funding deadlines was legally indefensible," said Keri Curtis Axel, Legal Counsel for LAHSA. "As the Court noted, HUD cannot bypass explicit statutory rules passed by Congress, and pull the rug out from an entire metropolitan region without rational justification. We are pleased the Court held the agency accountable."
"By attempting to force a rushed direct-to-HUD application scheme that Congress never intended, HUD sought an unlawful workaround that risked leaving thousands of unhoused Angelenos without support. Coupled with their recent loss in federal court in Rhode Island, today's order sends a clear message: HUD cannot unlawfully target proven local models or bypass statutory protections enacted by Congress, especially when doing so threatens to harm the thousands of people who rely on these systems for support." said Shayla Myers, Legal Counsel for the LA CoC.
LAHSA leadership, the LA CoC, and legal representatives will participate in a scheduled status conference before Judge Carter on October 27, 2026, as the agency continues preparing the FY 2026 Consolidated Application and implementing ongoing regional governance reforms.
About LAHSA
LAHSA is a joint powers authority of the City and County of Los Angeles, created in 1993 to address the problem of homelessness in Los Angeles County. LAHSA is the lead agency in the HUD-funded Los Angeles Continuum of Care, and coordinates and manages federal, state, county, and city funds for programs providing shelter, housing, and services to people experiencing homelessness.
About Los Angeles Continuum of Care
The Los Angeles Continuum of Care (LA CoC) is a body of local stakeholders, including unhoused people, nonprofit homeless assistance providers, and local governments and agencies, established by Congress to coordinate the region’s homeless response system under federal law. LA CoC, which includes 85 of 88 cities in Los Angeles, is led by a Board that carries out the CoC’s congressionally-mandated responsibilities to establish Los Angeles’ regional priorities for more than $200 million in annual federal homelessness funding allocated by Congress.
