Ninth Circuit Preserves LAHSA’s Role in Los Angeles Homelessness System

LCCN Staff Report

The U.S. Court of Appeals for the Ninth Circuit has largely rejected the Trump administration’s attempt to suspend a court order protecting the Los Angeles Homeless Services Authority’s role in administering the region’s homelessness programs and federal funding.

The ruling dissolves an administrative stay issued Sept. 10 and leaves major portions of a preliminary injunction against the U.S. Department of Housing and Urban Development in effect while the federal government pursues its appeal.

The dispute stems from HUD’s June 2026 suspension of LAHSA from several central roles within Los Angeles County’s Continuum of Care system.

According to LAHSA, the Ninth Circuit concluded that HUD had not demonstrated a likelihood of succeeding on the merits of its challenge to the injunction and recognized the potential disruption that changing the system immediately could cause as deadlines for federal funding approach.

One of the most immediate consequences involves federal grants already approved for fiscal year 2025.

Under the ruling, HUD cannot continue withholding those funds and must countersign the FY2025 grant agreements, with funding released according to the normal statutory schedule.

The court also preserved LAHSA’s role as the Collaborative Applicant for Los Angeles County as the region prepares its consolidated application for FY2026 Continuum of Care funding.

That issue is particularly time-sensitive because the application deadline is Oct. 14.

HUD had sought to move individual service providers to a “Direct-to-HUD” application system. LAHSA argued that changing the process shortly before the deadline could jeopardize funding and disrupt services for people experiencing homelessness.

The appellate court also left intact provisions reinstating LAHSA as the region’s Homeless Management Information System lead, Coordinated Entry System coordinator and administrator of the annual Point-in-Time homeless count.

The Ninth Circuit did give the federal government limited relief concerning approximately $239 million in FY2026 funding.

The court stayed the lower court’s order only to the extent it could be interpreted as requiring HUD to immediately release the money before it would normally be distributed. The funds instead will proceed according to the schedule established under the 2026 Appropriations Act.

The ruling also preserves a requirement that HUD formally respond to the evaluation of applicants seeking Continuum of Care system roles for FY2027 as Los Angeles County conducts its current request-for-qualifications process.

“This ruling provides greater stability at an important moment for Los Angeles,” LAHSA Commission Chair Stephanie Graves said. “For the thousands of people experiencing homelessness or working to rebuild their lives, the systems and funding that connect them to housing and services cannot simply stop.”

LAHSA Interim Chief Executive Officer Gita O’Neill said the agency is moving ahead with the region’s FY2026 federal application.

“Our priority has always been keeping frontline services running and ensuring that federal funding reaches our service providers,” O’Neill said.

The appellate decision does not resolve the underlying lawsuit or the federal government’s appeal of the preliminary injunction.

The Ninth Circuit is scheduled to hear oral arguments on the merits of HUD’s appeal Oct. 19 at the Richard H. Chambers Courthouse in Pasadena.