Los Angeles Homelessness Projected to Rise as Mayor Karen Bass Blames Funding Cuts

The numbers signal a sharp reversal for Mayor Karen Bass, who has centered her administration and her current bid for a second term on the reduction of street homelessness. After two years of declines, the latest data suggests the city’s unhoused population is returning to 2024 levels. While the overall increase is projected at 3.5%, one source told FOX 11 Los Angeles that the number of people living specifically on the street rose by around 8%.

Federal and State Funding Cuts

Mayor Bass has moved quickly to frame the rise as a consequence of external policy shifts rather than local failure. In a statement, she specifically blamed the Trump administration for increasing the costs of rent, groceries, and gas while slashing critical safety net funding.

The financial impact of these cuts is substantial. Bass reported that the federal government cut federal housing assistance by 50% last year, which stripped $70 million from the city. Additionally, she pointed to a state funding reduction of more than $70 million that hindered efforts to keep residents housed. Bass further noted that the lack of adequate services, many of which are controlled by Los Angeles County, remains a primary factor in people cycling in and out of homelessness.

The Inside Safe Program and LAHSA Oversight

Since taking office in 2022, Bass launched the $250 million Inside Safe program to transition unhoused residents into interim housing. The mayor claims the program has moved 6,000 people off the streets and that overall homelessness is down 11% since 2023. However, the program’s efficacy is a point of contention in the current political climate.

The Los Angeles Homeless Services Authority (LAHSA) has faced significant scrutiny, including audits that revealed gaps in accountability and fund tracking. While the city continues to provide millions to the agency, the Trump administration pulled $200 million in federal money amid a probe into financial mismanagement and poor contract oversight. In 2025, Los Angeles County almost entirely shunned the agency.

Downtown Crisis and Nuisance Properties

For residents of the city center, the statistics are secondary to the visible conditions on the ground.

The $37 Billion Housing Gap

Critics of the current strategy argue that the city is investing in the wrong types of housing. The current preference for 430-square-foot permanent supportive housing (PSH) units is prohibitively expensive. According to an open letter, the average cost to build one PSH unit funded by Proposition HHH has increased to $850,000, excluding land and wrap-around services.

However, the city has remained resistant to shifting funding away from expensive brick-and-mortar PSH apartments.

Political Stakes and the November Election

The timing of this data spike is critical as Mayor Bass faces a challenge in the November general election from City Councilmember Nithya Raman.

With the official LAHSA report due Friday, the results will likely vary by district, with some showing declines and others showing increases. The outcome will determine whether the narrative of a historic decline holds or if the city has entered a new period of growth in its unhoused population.