LOS ANGELES — Newly appointed U.S. Attorney Bill Essayli announced Tuesday the creation of a federal task force aimed at investigating fraud and corruption tied to funds intended to combat homelessness in Southern California.
The Homelessness Fraud and Corruption Task Force will focus on crimes involving the misappropriation of federal dollars across seven counties, including Los Angeles. Essayli, who was sworn in last week as U.S. attorney for the Central District of California, said the move comes amid growing concerns about transparency and accountability in how homelessness funds are being managed.
“Taxpayers deserve answers for where and how their hard-earned money has been spent,” Essayli said in a statement. “If state and local officials cannot provide proper oversight and accountability, we will do it for them.”
Los Angeles County, in particular, has come under scrutiny following audits revealing reckless spending and a lack of transparency at the Los Angeles Homeless Services Authority (LAHSA) — the agency responsible for distributing funds and coordinating services for the region’s unhoused population.
Just last week, the Los Angeles County Board of Supervisors voted to divert more than $300 million in annual homelessness funds away from LAHSA, opting instead to create a new county department to oversee homeless services. Following the decision, LAHSA CEO Va Lecia Adams Kellum announced her resignation.
The city of Los Angeles has also begun examining ways to bypass LAHSA and contract directly with service providers.
Homelessness remains a pressing issue in the region. A 2024 survey found that more than 75,000 people experience homelessness on any given night across Los Angeles County. Encampments are a common sight in downtown Los Angeles, particularly in Skid Row, and are increasingly appearing in suburban neighborhoods and under freeways.
California accounts for nearly one-third of the entire U.S. homeless population, making the state a focal point for both funding and reform efforts.
In addition to misused federal funds, the new task force will investigate fraudulent schemes involving private donations meant to support the homeless.
Los Angeles County Supervisor Kathryn Barger welcomed the federal oversight. “Accountability in homelessness spending is long overdue,” she said. “This task force will help restore public trust and ensure resources actually reach those in need.”