Los Angeles County officials warned that a federal executive order ending support for ‘housing first’ policies directly threatens the region's homelessness strategy and could eliminate more than $150 million in funding for permanent supportive housing programs.
The warning came during a Board of Supervisors meeting as the county prepares to launch a new Department of Homeless Services and Housing on Jan. 1, 2026, consolidating the region's fragmented response to a crisis affecting tens of thousands of residents.
President Donald Trump's July executive order "Ending Crime and Disorder on America's Streets" directs federal agencies to stop funding housing-first programs and instead prioritize jurisdictions that enforce laws against urban camping and require treatment as a condition of housing.
"This executive order comes amidst federal budget cuts and legislation curtailing access to social safety net programs for some of our most vulnerable populations," said Sarah Mahin, director of the Department of Homeless Services and Housing.
The policy shift poses a direct challenge to Los Angeles County's evidence-based approach, which prioritizes getting people into stable housing before addressing other needs. Housing-first programs in the county maintain a 97% retention rate for participants and have housed 25,000 people through the Housing for Health program alone.
The Los Angeles Continuum of Care received more than $220 million in federal funds in fiscal year 2024, with 77% supporting permanent supportive housing. Additional funding flows to continuums in Long Beach ($10.8 million), Pasadena ($6.5 million) and Glendale ($3.3 million).
"Housing first under the George W. Bush administration was adopted after SAMHSA recognized housing first as evidence-based practice," Mahin told supervisors. "It has really demonstrated time and time again that it is an effective approach."
The federal policy conflict emerges as the county faces significant fiscal pressures while standing up its new homeless services department. The consolidated department will absorb CEO Homeless Initiative operations and Department of Health Services' Housing for Health programs, but launches with what officials describe as a "structural deficit."
"The new Department of Homeless Services and Housing is starting with a structural deficit," Mahin said. "We know that there are more federal and state budget reductions in our future."
Despite the challenges, county officials highlighted progress in their encampment resolution efforts. The ‘Pathway Home’ program has removed more than 1,000 recreational vehicles from public streets and permanently housed 1,700 individuals since launching two years ago.
The program has conducted 62 operations across 20 cities and 15 unincorporated areas, with 40% of operations occurring in unincorporated communities. Officials emphasized the program's equity impact, noting 90% of operations have occurred in communities disproportionately impacted by homelessness and poverty.
County supervisors also launched an Emergency Centralized Response Center in December 2024 to coordinate outreach efforts. The center has processed more than 600 tickets from government partners since launch, with a 60% closure rate.
The center uses three tracking systems to manage requests, including LA-HOP for public inquiries and a specialized system for unincorporated areas. Response times have improved significantly, with average closure time dropping from 10 to 5 days for public requests.
"We have made progress on several key milestones, including securing a physical space in the Hall of Records, hiring an ECRC director, and integrating host operations into ECRC," Mahin said.
The county has also hired 2,200 new staff members under emergency authorities, reducing average hiring time by 71% from 288 days to 84 days. The expedited processes have helped execute more than $706 million in contracts and accept nearly $154 million in grant funding.
Supervisor Hilda Solis warned that federal cuts could force more people into the criminal justice system. "If these people don't get assistance through Department of Mental Health or Public Health, any one of the agencies here, there will be increase in jail system," she said.
The county plans community engagement workshops throughout September and October to help design the new department's structure, with sessions scheduled across all eight Service Planning Areas.
Officials acknowledged the challenging timing of launching a new department amid federal policy shifts and budget constraints, but emphasized their commitment to maintaining housing-first principles using local and state funding sources.
"We will continue to do both things," Mahin said, referring to housing people while providing supportive services. "We know our values in LA County."