By Mehek Cooke, The Daily Signal | June 13, 2026
Los Angeles Mayor Karen Bass is pushing back after the Trump administration suspended federal funding for the city’s Homeless Services Authority and a federal judge stated the agency appeared to have committed “obvious fraud.”
Instead of applauding the administration’s audit of the agency, Bass warned that pausing funding could ultimately cost lives. However, allegations of rampant fraud, if true, would mean that the homeless people who need resources the most are deprived of them.
I joined “Fox News @ Night” Thursday to discuss the Trump administration’s decision to suspend the agency’s federal funding pending an inspector general investigation.
Bass’ office said the mayor has “zero tolerance for mismanagement and negligence” and previously directed the city to evaluate how to move away from the agency.
That raises the obvious question: What exactly is a zero-tolerance policy today?
Bass cannot claim zero tolerance for mismanagement while asking taxpayers to keep funding a system facing the serious allegation by a federal judge of “obvious fraud.”
“They should use their own money to do it,” I said of the city’s desire to have the agency funded. “And at the end of the day, that is still taxpayer money because you are looking at federal and state dollars.”
Furthermore, the welfare fraud extends far beyond California and Minnesota and does not stop at state lines nor is it confined to one political party.
Federal officials came into Ohio last week, led by then-Acting Attorney General Todd Blanche, to announce a model for detecting and prosecuting fraud before taxpayer dollars disappear. The Justice Department announced the first federal-state partnerships to fight fraud, which expanded data sharing and brought charges against nine defendants for their alleged participation in more than $42 million in fraud schemes.
Leaders across the country need the political will to follow the money, demand stronger funding controls on the front end, and act promptly when warning signs appear. The Justice Department’s National Fraud Enforcement Division, led by Assistant Attorney General Colin M. McDonald, is building that model nationwide. The days of paying first and auditing after the money disappears are over.
Before government officials demand another check from taxpayers, they should answer a simple question: Where did the money go?
Mehek Cooke is senior national security and legal analyst for the Daily Signal.
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