The Cabinet secretaries spoke at a press conference at the LA Dream Center, a faith-based residential treatment facility in Echo Park converted from a former hospital. Their appearance came as a federal judge considered a lawsuit by LAHSA challenging the Trump administration’s suspension of the agency from federal grant activity.

RFK Jr. and HUD Secretary Criticize L.A. Homeless Agency, Endorse Faith-Based Programs

Turner and Kennedy held the event on August 11, 2026, the day U.S. District Judge David O. Carter was expected to rule in LAHSA’s lawsuit against the suspension. HUD suspended LAHSA in June 2026, citing inadequate financial controls, conflicts of interest, and other issues raised in an Office of Inspector General investigation. The suspension blocks the agency from applying for roughly $240 million in federal Continuum of Care homelessness funds due by August 26 on behalf of regional service providers.

“Our aim is that LAHSA does not receive another dollar until it has accountability,” Turner said, standing before screens reading “Cancel Corruption.”

Turner pointed to a federal indictment alleging that a LAHSA contractor, Abundant Blessings, engaged in a $23 million fraud scheme. He also referenced earlier findings involving LAHSA’s former CEO and more than $2 million in funds directed to her husband’s employer.

Kennedy said his department is addressing “billions and billions of dollars” of Medicare fraud carried over from the prior administration. He criticized systems that, in his view, maintain people on the streets rather than addressing underlying addiction and dependency.

“We cannot solve homelessness by funding systems that perpetuate it,” Kennedy said, according to reporting on the event. “We will fund programs that get people off the streets, into treatment and recovery, and back to self-sufficiency.” He added that programs whose metrics show they mainly maintain people on the streets rather than addressing dependency would lose federal funding.

• The press conference took place at the LA Dream Center, which officials said houses about 600 people in recovery and related programs at a cost of roughly $7,500 per person annually. Kennedy contrasted that figure with an estimated $185,000 annual cost cited for moving a person off the streets into housing in Los Angeles County.
• Turner displayed a brown bag he said contained drug paraphernalia distributed to homeless individuals with taxpayer funds, arguing it illustrated problems with the “housing first” model that prioritizes permanent housing without requiring treatment.
• Both secretaries endorsed faith-based recovery and transitional programs over pure housing-first approaches. Turner said he had visited nine or ten such agencies nationwide that deliver “real results.”
• LAHSA has an annual budget of roughly $845 million and coordinates substantial federal, city, and county homelessness spending. Los Angeles has long received more federal homelessness funding than other jurisdictions while remaining a major center of the crisis.
• A federal court in Rhode Island has previously blocked or set aside certain HUD funding changes related to shifting priorities away from housing first. LAHSA’s lawsuit argues the suspension is a pretext for broader policy changes.

Los Angeles has one of the largest homeless populations in the United States. Federal funding supports services for thousands of people in permanent housing and other programs. The suspension and related litigation create uncertainty for providers ahead of the August 26 application deadline. Officials from the administration say they intend to prioritize measurable outcomes, recovery, and accountability over what they describe as a “homeless industrial complex.”

Local leaders and LAHSA have disputed the characterization of the agency and warned that cutting funds risks services for more than 11,000 people, including children. The county previously shifted some of its own funding away from LAHSA amid separate concerns about financial controls.

Official Response

Turner stated the administration will fund results rather than “corrupt failure.” Kennedy emphasized support for programs that move people into treatment and self-sufficiency and highlighted the Dream Center as a model. “They’re doing it better than us,” he said of the faith-based facility, “and we need to start recognizing that.”

As he left, Turner offered encouragement to young residents at the center, saying, “The Lord got your back.”

LAHSA has maintained in court filings that the suspension is unwarranted and that cutting funds would disrupt critical services. The agency has sought a preliminary injunction to restore its ability to participate in federal programs.

Judge Carter took the preliminary injunction motion under submission after a hearing earlier in August. The administration has indicated providers may need to apply directly to HUD if LAHSA remains suspended. Related federal court actions in other jurisdictions have affected HUD’s broader funding notices. Existing inventories of services continue under current arrangements while litigation proceeds. HUD and HHS have signaled continued emphasis on recovery-oriented and faith-based models in national policy.

What Readers Should Know

The dispute centers on accountability for public funds, the effectiveness of different homelessness strategies, and the role of faith-based providers. Housing-first approaches have been the dominant federal model in recent years; the current administration is seeking greater emphasis on treatment, transitional housing, and measurable exits from homelessness. Faith-based organizations have long operated shelters and recovery programs but faced varying levels of access to certain federal funding streams under prior policies.

On August 11, 2026, HHS Secretary Robert F. Kennedy Jr. and HUD Secretary Scott Turner publicly criticized LAHSA’s record and endorsed faith-based recovery programs as preferred alternatives while a federal court weighs the agency’s challenge to a funding suspension. The outcome of the litigation and any policy shifts will affect how federal homelessness dollars are allocated in the Los Angeles region and potentially elsewhere.

Fact-Check Table

Sources

• Los Angeles Times – “RFK Jr. and HUD secretary rip L.A. homeless agencies and endorse faith-based alternatives,” Aug. 11, 2026 (Doug Smith). Primary source for event details, quotes, context, and lawsuit status. URL: https://www.latimes.com/california/story/2026-08-11/trump-agency-heads-rip-la-homeless-agencies-endorse-faith-based-alternatives
• New York Post reporting on the same event (Aug. 11, 2026). Additional quotes and cost comparisons cited by officials.
• HUD public statements and June 2026 suspension announcement regarding LAHSA.
• Court records related to Los Angeles Homeless Services Authority v. Donald J. Trump (Central District of California) for litigation timeline.
• Prior reporting on Abundant Blessings indictment and earlier LAHSA financial concerns.

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