The newly appointed U.S. Attorney for the Central District of California, Bill Essayli, a figure known for his alignment with conservative policies, has initiated a comprehensive federal investigation into the allocation of billions of dollars dedicated to addressing homelessness in Los Angeles County.
Essayli announced the formation of the Homelessness Fraud and Corruption Task Force, bringing together prosecutors from key agencies including the FBI, IRS, and HUD. The task force’s primary focus is to scrutinize how funds have been spent over the past five years, particularly following a recent audit revealing that $2.3 billion in Los Angeles County homeless funding remains unaccounted for.
“That’s a significant sum, and we are determined to understand where those resources went,” Essayli stated in his first television interview.
Los Angeles County has faced substantial criticism regarding its inability to effectively manage the visible homelessness crisis. The situation is readily apparent across various areas, from Skid Row downtown to the VA Hospital on Wilshire Boulevard and popular tourist destinations in Santa Monica.
During a tour of Skid Row, Essayli expressed his concern, stating, “It’s un-American what’s happening there. You have people living on the streets and there’s seemingly no government support being offered.”
Los Angeles Mayor Karen Bass voiced caution regarding the investigation, hoping it would not impede ongoing efforts to address homelessness.
“Last year, Los Angeles achieved a 10% decrease in street homelessness – bucking national trends. Preliminary data suggests another reduction this year, driven by increased accountability and transparency in budgeting.”
A recent survey estimates that approximately 75,000 individuals experience homelessness within Los Angeles County.
Kathryn Barger, chair of the LA County Board of Supervisors, and California Governor Gavin Newsom have both publicly endorsed Essayli’s investigation. Barger stated in a written statement:
- “I believe this task force will provide an essential layer of oversight to restore public trust.”
Newsom’s office emphasized the need for spending accountability, suggesting mechanisms to recover funds from local agencies that fail to demonstrate progress.
“Local governments must responsibly use state and federal homelessness dollars—and we expect them to deliver results. We share the federal administration’s goal of ensuring taxpayer funds are being used effectively to get people off our streets,” a Newsom spokesperson noted.
Essayli, a former White House intern during the George W. Bush presidency and a Republican state assemblyman with a history of challenging Democratic policies in Sacramento, has been outspoken about his support for President Donald Trump’s agenda.
“This aligns precisely with what President Trump envisions – accountability for public officials and taxpayers,” Essayli affirmed.