LA Homeless Funding Lawsuit Timeline: LAHSA Sues, Federal Court Grants Preliminary Injunction, Ninth Circuit Largely Denies HUD's Bid to Pause It
The lawsuit over Los Angeles' federal homelessness funding reached a key point on September 24, 2026: the U.S. Court of Appeals for the Ninth Circuit ruled 2-1 to largely deny the Department of Housing and Urban Development's motion to stay a preliminary injunction, allowing the Los Angeles Homeless Services Authority (LAHSA) to keep administering federal funding applications for the region in Los Angeles, Los Angeles County, California. Since LAHSA filed suit on June 29, the case has moved through three stages in three months — the complaint, a district court injunction, and the federal government's appeal — with a trial still to come.
The first stage was the lawsuit itself. On June 29, LAHSA sued President Donald J. Trump, HUD, and Secretary Scott Turner in the U.S. District Court for the Central District of California (Case No. 2:26-cv-07056), arguing the suspension exceeded federal authority, violated the Administrative Procedure Act, and was arbitrary and capricious, and it applied the same day for a temporary restraining order. "We are taking this step to protect formerly unhoused people who found a permanent home," said LAHSA Interim Chief Executive Officer Gita O'Neill. The Los Angeles Continuum of Care later joined the case as a plaintiff-intervenor. On July 2, U.S. District Judge David O. Carter converted the restraining-order application into a motion for a preliminary injunction.
The second stage was the injunction. On August 13, Judge Carter granted a preliminary injunction, finding that HUD had acted arbitrarily and capriciously and ordering LAHSA's authority restored, including its role as the region's collaborative applicant. The order noted that the practical effect of the suspension was to bar the Los Angeles region from applying for fiscal year 2026 federal homelessness funding, putting at stake approximately $241 million already earmarked by Congress for the region and resources serving more than 11,000 people in 85 cities. A trial was set for February 2027. On August 19, the federal government appealed to the Ninth Circuit.
The third stage was the appeals court's ruling. On September 24, a panel of Circuit Judges Jacqueline Nguyen, Ryan Nelson, and Roopali Desai granted HUD's stay motion in part and denied it in large part: the order reinstating LAHSA in four roles — collaborative applicant, Homeless Management Information Systems lead, Coordinated Entry System coordinator, and point-in-time count administrator — was left in force, as was the order requiring HUD to execute signed agreements for approved fiscal year 2025 grants; a stay was granted only as to a small portion of the order concerning one disbursement of funds. The panel wrote that HUD "chose to suspend LAHSA at a time when it would leave the Los Angeles region particularly vulnerable," with ill effects on vulnerable populations, critical programs, and ongoing services. Judge Nelson dissented from the principal parts of the ruling.
After the ruling, the application deadline for this year's federal funding cycle was set for October 14. HUD responded that it stands by the lawfulness of its suspension, will comply with the Ninth Circuit's temporary order, and looks forward to the court's full resolution on the merits. O'Neill said LAHSA was "moving at full speed" to meet the application deadline.
Source: GSM America
Source: GSM · USA (original Chinese edition)
Photo: 洛杉矶市中心第一街美国联邦法院大楼外立面，LAHSA诉联邦政府案由加州中区联邦地区法院审理。CC0，经 Wikimedia Commons。 / Exterior facade of the First Street U.S. Courthouse in downtown Los Angeles; the LAHSA case is before the U.S. District Court for the Central District of California. CC0, via Wikimedia Commons.
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