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LA Homelessness Surges 3.4% Despite $3 Billion a Year — Federal Prosecutor Points to Drug Spending

New city figures show 45,194 people living homeless in Los Angeles, with unsheltered numbers jumping 7.9%, as First Assistant U.S. Attorney Bill Essayli argues 'harm reduction' spending is fueling the crisis rather than solving it.
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Saturday, July 25, 2026

The Numbers Don't Lie

Los Angeles now has 45,194 people experiencing homelessness, a 3.4% increase from last year, according to figures released Friday — and that is after the city has been spending nearly $3 billion a year on shelters, housing and homeless programs.

The deeper number is worse. People living unsheltered on streets, sidewalks, parks and in vehicles jumped 7.9%, reversing two straight years of declines. The city is spending more, and the crisis is growing.

The Federal Prosecutor's Verdict

Bill Essayli, First Assistant U.S. Attorney for the Central District of California, was direct on social media Saturday.

'Based on what we're seeing on the ground, the millions Los Angeles City and County are spending on 'harm reduction' (aka handing out Narcan and clean needles) are only fueling the crisis,' Essayli wrote. 'The money needs to go to building shelters and residential treatment beds.'

Essayli's office has made drug enforcement at MacArthur Park — which he has described as an 'open-air drug market' — a stated priority. His view is grounded in what his prosecutors see daily: addiction, not housing costs alone, is keeping people on the streets.

The city has redirected approximately $250,000 into needle distribution and safer-smoking kits in the MacArthur Park area. Since 2020, Los Angeles County has invested more than $25 million in harm reduction programs aimed at preventing overdose deaths — spending that critics say enables addiction rather than treating it.

Bass Blames Trump; Her Own Party Disagrees

Mayor Karen Bass chose a different target. Her office released a statement blaming the Trump administration: 'The Trump Administration has driven up the cost of gas, groceries, and rent — pushing more families to the edge — and slashed critical safety net funding.'

That framing did not survive the city's own political dynamics. Democratic Councilmember Nithya Raman, who is challenging Bass for the mayoralty, called the figures a direct indictment of city leadership. 'That is a moral outrage. And it is a failure of leadership,' Raman wrote.

Bass responded by noting that Raman herself has served as Homeless Committee Chair: 'No Angeleno should be completely satisfied with our City's response to this crisis,' the mayor said.

The Market Has Already Voted

Three billion dollars a year is not a rounding error — it is a budget larger than the general fund of most American cities. When that level of taxpayer money produces a 7.9% jump in unsheltered residents, the program is not underfunded; it is misdirected.

Essayli's argument is the one the data supports: capital — public or private — does not solve a problem when it is deployed to sustain the condition rather than end it. Harm reduction as currently structured in Los Angeles keeps addicts alive on the street; it does not move them off it. Until city hall redirects spending toward residential treatment beds and enforced sobriety programs, the annual count will keep climbing, and the $3 billion annual bill will keep landing on the taxpayer with nothing to show for it.

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