• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Editor's Pick

LA homelessness fraud cases expose deeper problem than stolen millions, oversight hawk warns

by September 19, 2026
written by September 19, 2026

Federal charges alleging that millions of dollars were siphoned from Los Angeles homelessness programs are exposing what one lawmaker told Fox News Digital is a deeper failure in the way Washington funds and measures such programs.

The latest cases out of Los Angeles fuel the concern of Rep. Michael Cloud, R-Texas that only are corrupt providers stealing taxpayer money, but that the programs aren’t meeting their goal of getting people off the streets.

“The only people really getting upward mobility in these programs, it would seem, is the people running the programs,” Cloud told Fox News Digital after a House Oversight hearing examining federally funded homelessness programs in Los Angeles, Seattle and elsewhere. “And that’s not really what the program’s supposed to be about.”

LA REAL ESTATE VET COMES AT MAYOR BASS WITH RECEIPTS OVER DAMNING HOMELESSNESS REPORT: ‘SHE DOESN’T GET IT’

Federal prosecutors charged three defendants Wednesday in separate homelessness-fraud cases involving alleged misuse of taxpayer funds, including money allegedly spent on a nightclub and adjacent bingo hall and bribes allegedly tied to fake housing referrals.

Los Angeles’ homelessness agency paid one of the suspect nonprofits more than $75 million, according to federal prosecutors, leading Cloud to seek out the real culprits blazing the money trail.

WHITE HOUSE PUSHES ‘WATERSHED’ FRAUD-FIGHTING REFORM IN CONGRESS AS VANCE CONVENES TASK FORCE

Cloud said the fraud itself is only one piece of a broader problem, and that the system appears to reward spending and program activity without adequately measuring lasting outcomes.

Government too often judges success by “how much money we send out the door” instead of whether the spending is “actually helping people” or whether safeguards are in place to ensure taxpayer dollars are being used properly, Cloud said – describing the system as having been “incentivized for fraud.”

“We’ve got to take those incentives out and get back to making sure that all these programs have incentives for oversight and that the dollars are managed well,” Cloud said.

LETITIA JAMES FACES SCRUTINY AFTER NEW YORK CITY SPENDS $81,700 PER HOMELESS PERSON AMID SHELTER SCANDALS

Some programs can keep a person “kind of in a cycle of dependency so that the program manager has job security, in a sense, and gets to live off the government dime,” Cloud said

“You [are seeing] as we begin to look into waste, fraud and abuse, why is it that these Democrat-led states are saying, no, we don’t want the controls in place,” he said, pointing to Los Angeles Mayor Karen Bass’ decision to step down from the LAHSA commission.

Los Angeles is not alone, he said, citing what has been called the feds’ “Housing First” philosophy – generally prioritizing placing homeless in housing with less immediate regard for sobriety, mental-health treatment or overall stabilizing services.

WATCH: DR. OZ SAYS NEWSOM, OTHER BLUE STATES HAVE TURNED MEDICAID FRAUD INTO A ‘FEATURE’

Cloud did not use the term “Housing First” during the interview, but he described the concern behind that critique, arguing that some homelessness programs define success in ways that leave people dependent on government rather than moving toward independence.

Housing First is distinct from HUD’s “Continuum of Care” framework, which is the local funding and coordination structure through which nonprofit providers, state and local governments and other organizations receive federal homelessness money.

WALZ ADMINISTRATION IGNORED FRAUD WARNINGS AS BILLIONS VANISHED, HOUSE OVERSIGHT REPORT ALLEGES

In Los Angeles, LAHSA leads the local Continuum of Care, which HUD says received nearly $1 billion in taxpayer dollars over the previous five years.

Under Secretary Scott Turner, HUD moved to suspend LAHSA this year, citing alleged failures involving financial management, internal controls and safeguards against conflicts of interest. LAHSA has challenged the federal action in court.

“The ‘housing first’ experiment failed Americans by warehousing the vulnerable without results,” Turner said in June when HUD announced a $4.04 billion Continuum of Care funding opportunity.

SIGN UP TO GET THE POLITICS NEWSLETTER

“This ideology promised to end homelessness. Instead, billions of taxpayer dollars were spent while homelessness increased to record levels.”

That funding will focus on organizations aiding treatment and recovery, while setting aside $1.3 billion for new projects prioritizing transitional housing and supportive services and adding measures intended to prevent fraud, waste and abuse.

This post appeared first on https://www.foxnews.com

0 comment
0
FacebookTwitterPinterestEmail

previous post
NORAD F-16 intercepts aircraft that violated restricted airspace over Camp David with Trump present: officials
next post
Trump announces new ‘AI Force,’ vows to protect industry as AI czar announcement nears

related articles

NORAD F-16 intercepts aircraft that violated restricted airspace...

September 19, 2026

Trump announces new ‘AI Force,’ vows to protect...

September 19, 2026

Obama’s brother-in-law rejects civil rights, racism argument against...

September 18, 2026

Swing state mayor sued as city’s Muslim holiday...

September 18, 2026

Dems abandon candidate who said MAGA is ‘more...

September 18, 2026

Socialist Claire Valdez faces calls for federal probe...

September 18, 2026

Foreign hackers breach two more US water utilities,...

September 18, 2026

Trump’s EPA reforms are a huge boost to...

September 18, 2026

Ex-Dem insider reveals why Biden’s daughter threatened to...

September 18, 2026

‘Gone too far:’ GOP candidate runs to Trump’s...

September 18, 2026
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Thinking of investing in SK Hynix ADS today? Here are 5 must-know risks and catalysts

    July 10, 2026
  • US stocks poised for continued gains through year-end: find out more

    June 30, 2026
  • Palo Alto crushes earnings expectations: stock is down 8%- here’s why

    September 2, 2026
  • SpaceX stock slips further after Starship test flight scrub: Is the 19% dip a buy?

    July 17, 2026
  • HOOD stock price analysis as key Robinhood Chain metrics surge

    September 3, 2026

Popular Posts

  • 1

    CoreWeave stock jumps 10% as analysts see major backlog upside

    June 16, 2026
  • 2

    Intel, AMD stocks slide again in aftermath of Broadcom’s weak outlook

    June 5, 2026
  • 3

    Dow tumbles 680 points as chip rout sends Nasdaq to biggest drop since 2025

    June 5, 2026
  • 4

    Wedbush makes a strong case for buying the dip in Planet Labs stock

    June 5, 2026
  • 5

    Wedbush makes a strong case for buying the dip in Planet Labs stock

    June 5, 2026

Categories

  • Editor's Pick (629)
  • Investing (1,362)
  • Stock (90)

Latest Posts

  • Buy GE Vernova, Lam Research, United Airlines stocks: Morgan Stanley

    July 15, 2026
  • Historian blasts Smithsonian’s activism shift after first visit in over a decade: ‘Completely different place’

    August 4, 2026
  • Why SoftBank, Samsung and SK Hynix are taking the worst hit in Asia’s AI rout

    July 17, 2026

Recent Posts

  • Micron stock: could a valuation rerating drive MU shares to $1,600?

    September 17, 2026
  • Amazon Prime Day begins today: Here’s what AMZN investors should know

    June 23, 2026
  • KOSPI rockets above 7,000 as AI stocks overpower yen and oil fears

    September 9, 2026

Editor’s Pick

  • Top 3 reasons Japan’s Nikkei 225 Index is falling today

    June 8, 2026
  • Intel, AMD tumble as chip sell-off deepens: what if US-Iran conflict drags on?

    July 13, 2026
  • Trump proposes 20% cargo fee as US vows to police Strait of Hormuz

    July 13, 2026
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock