LA County Seeks New Tax Hike Amid Homelessness Spending Scrutiny

County leaders face backlash over poor oversight and lack of transparency in managing billions spent on homelessness programs.

Published on Feb. 14, 2026

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After spending billions on homelessness programs plagued by audits, missing records, and murky bookkeeping, Los Angeles County leaders are now asking voters to approve a new half-cent sales tax hike. This comes just two years after the passage of Measure A, a permanent homelessness sales tax that generates over $1 billion annually. However, a federal judge has sharply criticized the county's inability to track how these funds were spent, with audits finding over $50 million in prior funds distributed without proper repayment agreements.

Why it matters

The proposed tax increase highlights the ongoing challenges LA County faces in addressing homelessness and managing public funds effectively. The lack of transparency and accountability around previous homelessness spending has eroded public trust, raising questions about whether additional funding will be used responsibly.

The details

The new tax proposal is being pitched as a way to offset potential federal health-care cuts affecting Medi-Cal. However, a separate court-ordered review of over $2.3 billion in homelessness spending uncovered fractured data systems, inconsistent reporting, and records so poor that auditors sometimes could not determine how funds were used or whether programs worked at all. Supervisor Kathryn Barger cast the lone dissenting vote, warning the county faces a credibility crisis.

  • In 2024, a audit completed before voters approved Measure A was released only afterward, potentially depriving voters of key information before they agreed to the new tax.
  • In 2026, LA County supervisors voted to place a new half-cent sales-tax hike on the ballot.

The players

Los Angeles County Board of Supervisors

The governing body of Los Angeles County, which is proposing the new sales tax hike to address homelessness.

David O. Carter

A U.S. District Judge who sharply criticized LA County after reviewing nearly two decades of audits documenting weak oversight, incomplete financial records, and an inability to account for where homelessness funds were spent.

Kathryn Barger

A Los Angeles County Supervisor who cast the lone dissenting vote, warning the county faces a credibility crisis over promises made and promises broken.

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What they’re saying

“The people deserve to know where their money is going.”

— David O. Carter, U.S. District Judge (Los Angeles Times)

“We are not, as a whole, credible when it comes to promises made, promises broken.”

— Kathryn Barger, Los Angeles County Supervisor (nypost.com)

What’s next

If voters approve the measure, the new half-cent sales tax hike would go into effect, raising the countywide rate to 10.25%.

The takeaway

LA County's request for more funding to address homelessness comes amid ongoing concerns over the lack of transparency and accountability in how previous funds were managed. The proposed tax increase highlights the need for the county to rebuild public trust by demonstrating effective and responsible use of taxpayer money.