Los Angeles’ embattled homelessness agency is throwing in the towel on four major roles it has controlled for decades, as pressure from the Trump administration and local officials continues to mount.

The Los Angeles Homeless Services Authority Commission voted Tuesday not to participate in the LA Continuum of Care Board’s request-for-qualifications process for the region’s lead homelessness agency.

That means LAHSA will not seek to retain responsibility for the annual application for federal homelessness funding, the Homeless Management Information System, the annual point-in-time count or the coordinated-entry system.

Los Angeles County and the city are now competing to take over the responsibilities.

The county wants all four roles, while the city is seeking at least two.

The bombshell decision comes amid accusations from the Trump administration and city and county officials that LAHSA mismanaged taxpayer dollars and failed to provide transparency.

Just five weeks ago, in August 2026, Robert F. Kennedy Jr. traveled to Southern California with HUD Secretary Scott Turner to launch a fiery public attack on LA’s homelessness system.

The federal government is also investigating LAHSA’s use of federal funds amid allegations of fraud and widespread mismanagement.

The agency has received more than $1 billion in federal funds since 2021, including $220 million in 2024.

The funding fight has already landed in federal court.

In June, HUD suspended further funding to LAHSA until officials could demonstrate adequate safeguards to protect taxpayer dollars.

A Los Angeles federal judge blocked that move last month, finding that an abrupt loss of funding would jeopardize housing and services for more than 11,000 people across the region.

US District Judge David Carter’s partial preliminary injunction allowed LAHSA access to federal homelessness funding for fiscal year 2026.

Nearly $241 million already earmarked by Congress for the Los Angeles region, as well as immediate future funding for the next fiscal year, is also at stake.

But the 9th US Circuit Court of Appeals overruled Carter’s injunction last week, creating further uncertainty around LAHSA’s eligibility to coordinate housing and homelessness services across the county.

The county has already created a new homelessness department and shifted $300 million away from LAHSA.

The city is taking similar action.

Mayor Karen Bass and Councilwoman Nithya Raman, who face each other in the Nov. 3 mayoral election, have both said Los Angeles needs to separate from LAHSA and establish an independent city-run entity.

Bass also declined an invitation to appear at a House hearing examining allegations involving the agency.

LAHSA says its latest decision won’t affect its work leading the Continuum of Care or supporting the city through the end of fiscal year 2026-27.

Its agreements with the city to manage programs and contracts run through June 30, 2027.

Applicants had until Tuesday to notify the Continuum of Care Board of their intent to apply.

Applications are due Sept. 25, with selections expected to be reviewed by HUD and the federal court.

The stakes are massive: California has nearly 182,000 homeless people, Los Angeles County has 73,000 and the city has more than 45,000 — a 3.4% increase from the prior year.