When thousands of people sleep on the streets, every dollar is a lifeline. But in Los Angeles, the government says that money was treated like a private bank account.

WHAT HAPPENED

The White House pulled the plug on the city's largest homeless agency. They say the group wasted money and failed to help the people who needed it most.

Los Angeles County also cut ties with the group. They are walking away from a partnership that has lasted for years.

The government used the words "obvious fraud" to describe what they found. They say the group's failures are deep and bad for the city.

What the money shows

• $1 billion in federal tax money spent since 2021.
• White House called it "obvious fraud."
• All federal cash is now cut off.
• LA County also stopped its own local funding.
• This was the city's biggest group for the homeless.

THE BIGGER QUESTION

How did $1 billion disappear without anyone noticing sooner? We need to ask if the systems meant to watch our tax dollars are broken.

Did people in power just look the other way while the crisis got worse? It is hard to trust the system when so much money vanishes while the streets stay full.

WHAT HAPPENS NOW

People living on the street may lose their help today. The city has to find a new way to run these programs fast.

If they don't, the crisis in LA will get much worse. Taxpayers will also want to know if they will ever get their money back.

WHAT WE STILL DON'T KNOW

1. Where exactly did the $1 billion go?
2. Will any leaders of the agency face criminal charges?
3. How will the city house people tonight?