The United States has suspended funding for aid to homeless people in Los Angeles due to evidence of fraud.

The U.S. Department of Housing and Urban Development announced that it has suspended the allocation of federal funds to a major homeless service organization in Los Angeles, citing significant fraud. Currently, over 40,000 people in Los Angeles are living in tents, vehicles, and other temporary shelters. The Department of Housing and Urban Development stated in a notice released on Thursday that over the past five years, the Los Angeles homeless service agency has received over $1 billion in public funds, yet the area remains one of the most severely affected in the country by the homelessness crisis linked to drug problems. Federal authorities have evidence that the organization's financial management, internal controls, and conflict of interest prevention measures are flawed, making it difficult to ensure the safe use of taxpayer funds. The allocation of funds has been immediately halted, pending an investigation by the Inspector General's Office of the Department of Housing and Urban Development.