In 2023, Mayor Karen Bass helped CHIRLA land a $450K federal contract but that deal got frozen by DHS, triggered a lawsuit, and was ultimately canceled.
So while L.A. burns and protests rage, the money trail leads right back to state coffers and a policy pipeline thatβs now under serious scrutiny.
Financial perspective? The fallout could ripple wide:
β’ Expect audits, federal investigations, and contract freezes across similar nonprofits tied to political action.
β’ Public trust in government spending takes a hit, which can spark ballot measures, lawsuits, and backlash from voters.
β’ Municipal funding transparency becomes a market risk, especially for large cities handling controversial contracts.
β’ Nonprofits across the state could face tighter compliance and funding restrictions, impacting advocacy and operations statewide.
What this means for you π
If you live in California your tax moneyβs not just going to services, itβs funding activism.
If youβre watching state budgets and political risk: expect turbulence in how social orgs are financed and audited.
And if youβre in finance? Itβs time to factor political optics into public funding analysis.
Source: LauraPowellEsq