Congress has opened an investigation into waste, fraud, and abuse of federal funds in Los Angeles purportedly used to combat homelessness.

The House Oversight Committee’s Subcommittee on Delivering on Government Efficiency (DOGE) announced Thursday that it had sent a letter to Los Angeles Democrat Mayor Karen Bass, asking her to testify on Sept. 15 and to provide the members with documents and communications related to contracting and grant-making by the Los Angeles Homeless Services Authority.

“The Subcommittee on Delivering on Government Efficiency is investigating potential waste, fraud, and abuse of federal grant funding intended to address homelessness. Specifically, the Subcommittee is concerned about the potential misallocation of federal dollars by the Los Angeles Homeless Services Authority (LAHSA) to nonprofits in Los Angeles and the surrounding area,” subcommittee Chairman Tim Burchett, R-Tenn., said in a statement.

“Because Los Angeles officials have not adequately protected federal taxpayer dollars, it appears that many nonprofits to which those funds have been allocated are not using them for their intended purpose. To understand the extent of the problem and the steps being taken to safeguard federal funds, we request certain documents and information from your office, and your testimony at a public hearing."

Annual data from the Department of Housing and Urban Development shows that California has nearly 182,000 homeless people, with 73,000 in Los Angeles County alone, and 45,000 in the city of Los Angeles. 

The numbers represent a 3.4% increase over last year, the subcommittee said. 

Since 2021, LSHSA, Los Angeles' primary homeless services agency, has received more than $1 billion in federal funds, including $220 million just in 2024. 

In addition to the congressional investigation, LAHSA is also being investigated by the HUD Inspector General for alleged “repeated false statements and its irresponsible actions and failures, including its lack of financial management, internal controls, and safeguards against conflicts of interest.” LAHSA’s federal funding has been frozen by HUD since June while it investigates.

The subcommittee also noted recent reports finding corruption in LAHSA’s contracting and grant process, with former LAHSA CEO Va Lecia Adams Kellum personally authorizing a $2.1 million contract with the homelessness assistance provider for which her husband works. 

Another organization, 1736 Family Crisis Center, has received more than $36 million in federal grants since 2008. And from 2023 to 2024, its chief executive officer, Carol Adelkoff, was paid $1.6 million in compensation while living in Hawaii – an amount higher than other CEOs at similar nonprofits in L.A.

The investigation comes just as Justin Szlasa, a member of LAHSA’s governing commission who has pushed for auditing, transparency, and oversight, was removed from the committee without explanation, the LAist reported. Among Szlasa’s discoveries while on the committee was a nonprofit getting paid to serve twice as many homeless camps than actually existed.