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Bass skips hearing on L.A. homeless spending, calling probe politically motivated

Los Angeles Mayor Karen Bass declined to testify Tuesday before a House subcommittee investigating alleged fraud and mismanagement in the region’s homelessness system, but that did not stop her from going after Republican leaders on the panel.

As the hearing began, Bass’ reelection campaign accused “extremist Republicans in Congress” of staging a politically motivated attack on Los Angeles and its efforts to address homelessness, months after the Trump administration attempted to suspend federal funding for the city.

“Los Angeles will not be bullied,” Bass wrote. “Not by this President, and not by this Congress. I’m going to keep doing my job — cleaning up encampments, getting Angelenos inside, and making LA safer.”

Bass had notified Rep. Tim Burchett (R-Tenn.), the chair of the Subcommittee on Delivering on Government Efficiency, on Sept. 4 that she would not be available to testify, but her absence still drew criticism from Burchett, who told The Times he was willing to use the “fullest extent of the law” and possibly issue subpoenas to compel her to testify.

“I’d like to get her in,” he said after the hearing. “I realize that we have elections coming up and she knows that as well as anybody … but I would hope that she would come up here and answer questions.”

Burchett added that there are “legitimate questions” about how federal homelessness funds were used in Los Angeles and what he believes was their mismanagement. In his opening remarks, Burchett said he was concerned about how the city spent federal funds given the ongoing homelessness issue in the area.

“Los Angeles is at the center of American homelessness,” Burchett said, and specifically pointed to Skid Row as an example of the “abject failure” of the city’s approach to homelessness. “Under Mayor Karen Bass, law and order in the neighborhood has collapsed.”

Burchett added that the Los Angeles Homeless Services Authority was “ripe for corruption and financial mismanagement,” and raised concerns about contracts that have been doled out to nonprofits in Los Angeles and the surrounding areas.

Bass had served on LAHSA’s 10-member board since 2023 but stepped down last week, in part citing scheduling issues. Burchett suggested she “suddenly removed herself” from the board to dodge accountability after being asked to testify.

In a letter sent this month, Burchett noted that he wanted to scrutinize how homelessness has gotten worse during her tenure as mayor. David Michaelson, the mayor’s attorney at City Hall, pushed back on Burchett’s assertions, saying unsheltered homelessness in L.A. — the number of people living outside or in their vehicles — has dropped by 11% since Bass took office in 2022.

“She has achieved these results by focusing on interim housing, not ‘Housing First,’ and has also challenged certain ‘Harm Reduction’ strategies that are ineffective,” Michaelson wrote. “For example, Mayor Bass ordered that City contractors no longer provide needles to drug users and instead focus on services that encourage rehabilitation and protection of human life.”

Burchett’s effort to force Bass to testify over concerns about “potential misallocation of federal dollars” by LAHSA is the latest example of congressional Republican leaders trying to examine California’s handling of regional issues and finances. In the last year, Republican have launched investigations into the Palisades wildfire preparations as well as the distribution of charity funds for the victims of the Palisades and Eaton fires.

Rep. Melanie Stansbury (D-N.M.), the top Democrat on the subcommittee, said Tuesday’s hearing was an “unserious and political show targeting” the most vulnerable Americans and the services they need.

“Housing is a human right, and we’re not going to sit here while you use the housing and homeless crisis of this country to try to cough up whatever you’re trying to do politically before the midterms,” Stansbury said.

During the hearing, Burchett showed a short video of Skid Row, filmed by Jonathan Choe, a MAGA-aligned news influencer, who offered testimony during the hearing as well. Choe mostly focused his testimony on his concerns about substance abuse not being enough of a priority in addressing homelessness.

Paul Webster, a senior fellow at the Cicero Institute and executive director of the L.A. Alliance for Human Rights, also testified. Prior to the hearing, he testified in writing that LAHSA — the region’s primary Continuum of Care administrator — has been marked by financial mismanagement and fraud even as its federal funding has grown.

“Los Angeles and its utilization of federal homeless assistance policy is not an outlier,” Webster wrote. “It is the leading edge of a system that lacks accountability, effective monitoring, and prioritizes inputs rather than outcomes.”

Burchett said the panel will continue to take a “good hard look” at homelessness in Los Angeles and other “leftists” cities. He added that he intends to file legislation to require federally funded housing services to offer substance abuse treatment.

Also Tuesday, the LAHSA board voted not to compete with the city and county to keep carrying out many of its core duties, such as operating a homeless database and applying for federal funds on behalf of other agencies.

With L.A. city and county agencies preparing their own applications, a decision to compete with them “would only fracture regional collaboration during an already complex time,” LAHSA said in a statement.

The decision comes a few months after the Trump administration sought to suspend LAHSA from applying for and receiving federal funds. The agency sued to block that effort, winning a partial victory in federal court. The 9th Circuit Court of Appeals stayed that decision on appeal.

In response to the suspension and the ongoing legal battle, the federally mandated board that contracted with LAHSA for those functions put next year’s contract out to bid, forcing the agency to compete.

LAHSA, already diminished by the county’s decision last year to divert its homelessness funds to a new county homelessness department, now retains contracts for programs in the city. But Bass has said the city needs to take over those as well.

Ceballos reported from Washington, Smith from Los Angeles.

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Billionaire Leon Black skips Epstein deposition and sues House panel over subpoenas

Billionaire investor Leon Black refused to appear for a sworn deposition before Congress on Thursday and instead sued the House Oversight Committee, asking a federal court to block subpoenas issued as part of its investigation into disgraced financier Jeffrey Epstein.

The House Oversight Committee served Black with two subpoenas during a closed-door voluntary interview in June after lawmakers said he refused to answer questions about nondisclosure agreements. One subpoena demanded Black produce nondisclosure agreements and other documents, while the other compelled him to return for a deposition before the committee.

Black’s lawsuit argues the subpoenas exceed the committee’s authority by seeking private information unrelated to Epstein or any legitimate legislative purpose. It asks a federal judge to declare the subpoenas invalid and prevent the committee from enforcing them.

“The Committee is on a fishing expedition that oversteps its authority and completely ignores its responsibility,” Black’s attorney, Susan Estrich, said in a statement. “This is no longer about finding the truth about Epstein. It is about trying to destroy Mr. Black.”

Top Oversight lawmakers threaten to hold Black in contempt

The top Republican and Democratic lawmakers on the committee both criticized Black’s lawsuit and said they planned to discuss later Thursday whether they would hold him in contempt of Congress.

“This is unacceptable. We’re very disappointed,” said House Oversight Chair James Comer. “Of all the powerful billionaires and political people we’ve brought in for interview and depositions, this is the first time anyone’s filed suit.”

Rep. Robert Garcia, the top Democrat on the committee, called the lawsuit “laughable” and that Black is “trying to slow the process down of getting us the information.”

“Today, the process of contempt has to begin,” Garcia said.

Being held in contempt opens up a witness to criminal prosecution. If the House approves a contempt resolution against Black, it would fall to the Justice Department to decide whether to bring charges against him.

Black paid Epstein over $150 million during their yearslong relationship

Black is the co-founder and former chief executive of the private equity firm Apollo Global Management. He stepped down in 2021 during the fallout over his ties to Epstein.

Lawmakers have alleged that Black paid Epstein $180 million during their yearslong relationship.

A 2021 review commissioned by Apollo found that Black paid Epstein $158 million from 2012 to 2017, after Epstein pleaded guilty in 2008 to soliciting prostitution from a minor. The review said the payments were for “bona fide tax, estate planning and other related services.”

Black is among a number of influential figures to appear in the investigation into Epstein and the web of wealth and influence around him. Other figures to have appeared for the investigation include former Democratic President Bill Clinton, Commerce Secretary Howard Lutnick and Microsoft co-founder Bill Gates.

Black is mentioned repeatedly in files that the Justice Department has released related to the Epstein investigation. He also appears in a collection of birthday messages sent to Epstein that were released by the House committee last year, including a poem attributed to Black that refers to “Blond, Red or Brunette, spread out geographically.”

Before the June 26 appearance before the committee, Black maintained that he was not aware of Epstein’s “nefarious activity” until 2019 and that he paid Epstein for legitimate purposes, in part due to his “unrivaled network of relationships” with influential figures.

Cappelletti writes for the Associated Press.

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