Top Democrat Mayor Refuses To Testify For Billions In Fraud

Top Democrat Mayor Refuses To Testify For Billions In Fraud

Los Angeles Mayor Karen Bass will not appear at a congressional hearing examining more than $1 billion in federal homelessness funding received by the Los Angeles Homeless Services Authority, putting a fresh spotlight on how taxpayer money has been managed as the city continues to struggle with homelessness.

Bass, a Democrat, had been asked to testify September 15 before the House Oversight Committee’s Subcommittee on Delivering on Government Efficiency.

The congressional panel is investigating potential fraud, waste as well as abuse involving federal homelessness grants administered through the Los Angeles Homeless Services Authority, better known as LAHSA.

The House Oversight Committee reports that LAHSA has collected over $1 billion in federal funding since 2021, with roughly $220 million provided in 2024 alone.

Now lawmakers want answers about where that money went, how it was managed and whether sufficient safeguards were in place to protect taxpayers.

Bass Says She Won’t Be Available

Bass’ legal counsel, David Michaelson, informed congressional investigators that the mayor would not be available for the requested September 15 appearance.

“Unfortunately the mayor is not available on that date,” the letter stated.

The letter did not provide a public explanation for why Bass could not attend. Her legal team said it had contacted subcommittee staff to discuss the matter.

Although Bass is not expected to appear at the hearing, her office has agreed to provide documents requested by congressional investigators.

Those records are expected to cover the period beginning January 1, 2020, and include information concerning LAHSA’s internal controls, federal homelessness money and communications involving the mayor’s office, LAHSA, the Los Angeles City Council and Los Angeles County officials.

“We are commencing the collection and review of records in response to the Subcommittee’s request,” Bass’ attorneys wrote.

Her office said the documents would be provided as soon as possible.

The requested records are due September 14 — just one day before the congressional hearing.

More Than $1 Billion In Taxpayer Money Under Scrutiny

The amount of money involved is substantial.

According to congressional investigators, LAHSA has received more than $1 billion in federal taxpayer funding since 2021.

Despite the enormous financial commitment, homelessness remains a serious problem across Los Angeles.

House investigators cited federal data showing that Los Angeles County has approximately 73,000 homeless people, with more than 45,000 living within the City of Los Angeles.

Those numbers are helping fuel a broader debate over whether taxpayers are getting acceptable results from the enormous sums being spent on homelessness programs.

The House panel says its investigation is intended to determine whether federal money was properly managed and whether adequate protections existed against waste, fraud, conflicts of interest and other potential abuses.

The allegations remain the subject of investigations and disputes.

Republicans Demand Accountability

The House subcommittee, chaired by Republican Rep. Tim Burchett of Tennessee, requested Bass’ testimony.

Republicans overseeing the investigation argue that taxpayers deserve a detailed explanation of how the money was spent.

The committee has alleged that Los Angeles officials failed to adequately safeguard federal taxpayer dollars and is examining LAHSA’s contracting and grant-making practices.

Bass’ expected absence will not stop the hearing.

The subcommittee says it intends to move forward and plans to announce additional witnesses.

California Republican gubernatorial candidate Steve Hilton has also criticized the handling of homelessness spending, arguing that taxpayers deserve to know why the problem remains so severe after years of major government expenditures.

“There’s no question that taxpayers need to understand where their money has been going,” Hilton said.

The controversy comes at a politically sensitive time for Bass, who is seeking reelection in November.

Federal Government Investigating LAHSA

The congressional inquiry is not the only scrutiny facing LAHSA.

The Department of Housing and Urban Development announced in June that it was suspending further federal funding to the agency following a HUD-initiated investigation.

Federal authorities cited questions surrounding financial oversight, internal safeguards, possible conflicts of interest, and claims that inaccurate statements may have been made.

HUD’s Office of Inspector General also opened an investigation.

LAHSA has disputed broader accusations of wrongdoing and has defended steps it says it has taken to improve its financial controls and operations.

The dispute has also reached federal court, adding another layer to the fight over homelessness funding in Los Angeles.

$2.1 Million Contract Raises Questions

One transaction receiving particular attention from congressional investigators involves former LAHSA CEO Va Lecia Adams Kellum.

Investigators pointed to a $2.1 million contract involving Upward Bound House, an organization where Kellum’s husband worked.

Kellum had previously maintained that she stayed out of decisions involving the organization that employed her husband.

However, public records subsequently showed that she personally authorized the contract. LAHSA said the document had “inadvertently ended up” in front of her.

The transaction has become part of the broader debate over whether LAHSA had sufficient safeguards to prevent potential conflicts of interest.

No criminal finding against Kellum is established by the congressional investigation itself.

Bass Pushes Back On Responsibility

Bass’ attorneys are also challenging the suggestion that the mayor personally controls LAHSA.

“LAHSA has its own executive leadership team and staff who are responsible for day-to-day operations, budget and administration,” her legal counsel wrote.

“The Mayor does not control LAHSA’s operation, budget, or administration.”

That distinction could become an important part of the mayor’s response to the congressional investigation.

Republican investigators, however, contend that Los Angeles officials still have a responsibility to oversee the use of federal taxpayer money flowing into homelessness programs.

That disagreement gets to the heart of the controversy: Who is ultimately responsible when enormous amounts of taxpayer money are spent through government-funded programs?

Los Angeles Homelessness Spending Faces Growing Scrutiny

The investigation comes amid growing concern about the cost and effectiveness of homelessness programs in California.

Federal officials have argued that Los Angeles has received enormous amounts of federal assistance without producing sufficient improvements in homelessness.

HUD said in August that federal homelessness funding to Los Angeles had nearly tripled over the previous decade while homelessness in the area doubled.

That does not by itself establish that funding caused homelessness to increase, but it has intensified questions about whether existing programs are producing adequate results.

For taxpayers, those questions are increasingly difficult to ignore.

When the federal government distributes hundreds of millions of dollars intended to address homelessness, Americans have an interest in knowing where the money went, who received it and what results were achieved.

What Happens Next?

Bass’ office is expected to turn over the requested records before the hearing.

The House panel, meanwhile, says its investigation will continue regardless of whether the mayor attends on September 15.

There is also an important legal distinction surrounding her requested appearance.

A congressional request to testify is not necessarily the same thing as a subpoena. Congressional committees can issue subpoenas under applicable House rules, and a duly issued subpoena can carry legal consequences if it is ignored.

For now, the controversy centers on Bass’ decision not to attend the scheduled hearing and the larger investigation into LAHSA’s handling of federal homelessness funds.

With more than $1 billion in federal money involved and tens of thousands of people still experiencing homelessness across Los Angeles County, congressional investigators are signaling that they want a detailed accounting of how taxpayer dollars were spent.

The documents provided by Bass’ office — along with testimony presented at the upcoming hearing — could determine where the investigation goes next.

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