Pomona, California

A legal dispute between the Trump administration and the Los Angeles Homeless Services Authority (LAHSA) over federal Continuum of Care grants is straining dozens of local nonprofits that serve people experiencing homelessness and survivors of domestic violence. HUD suspended LAHSA from federal grant activity this summer, prompting a lawsuit. A federal judge ordered HUD to execute stalled grant agreements, but the Ninth Circuit Court of Appeals stayed that order pending its own review, leaving contracts unresolved for months.

Providers including the Downtown Women's Center, House of Ruth, The People Concern, and Jewish Family Service L.A. say they are burning through reserves and private donations, cutting staff hours, and covering hundreds of thousands of dollars in monthly costs without reimbursement. LAHSA says more than 50 providers could be affected, with nearly $65 million in grants at risk by year's end. HUD maintains it isn't obligated to release funds while the appeal is pending, citing concerns about LAHSA's management. The Ninth Circuit is expected to hear arguments soon, with a status conference to follow.