More secrets are being revealed.
A newly released federal audit has revealed what officials describe as widespread mismanagement of taxpayer-funded housing programs during the final year of the Biden administration — with billions of dollars in rental assistance paid to recipients who may not have qualified.
According to a detailed report from the U.S. Department of Housing and Urban Development (HUD), more than $5 billion in federal housing funds were classified as “questionable” during fiscal year 2024. The review identified payments linked to tens of thousands of deceased individuals, along with thousands of potential non-citizens, raising renewed concerns about oversight under President Joe Biden.
HUD officials said improper payments were found nationwide, with particularly heavy concentrations in New York, California, and Washington, D.C. In some cases, assistance tied to deceased recipients appeared in every U.S. state, pointing to what federal officials called systemic weaknesses in program controls.
“This represents a massive failure to safeguard taxpayer dollars,” said Scott Turner, who now oversees the department. Turner stated that weak financial controls and rushed spending priorities contributed to billions in potentially improper payments.
The HUD audit — spanning 183 pages — found that $5.8 billion out of nearly $50 billion in total rental assistance warranted further review. Approximately 11 percent of federal housing funds examined were tied to more than 200,000 tenants flagged for possible eligibility issues.
Among those cases:
- Nearly 30,000 recipients were listed as deceased
- Over 9,000 individuals were identified as non-citizens
- More than 165,000 households received payments above local income limits
HUD housing assistance programs are designed to support low-income Americans who would otherwise struggle to afford shelter. Officials warned that when funds are misdirected, eligible families may be denied help, while taxpayers shoulder the cost.
Investigators also criticized prior policies that emphasized rapidly distributing federal funds with limited verification. Housing authorities, landlords, and contractors were often relied upon to self-report eligibility, a system auditors say left the door open to abuse.
Now, HUD says it is moving to tighten oversight and restore accountability measures emphasized during the Trump administration. President Donald Trump has repeatedly called for stronger safeguards to protect taxpayers from waste, fraud, and abuse.
HUD officials confirmed the department will review funding agreements nationwide and may pause or revoke payments where fraud is confirmed. Criminal referrals are also possible in severe cases.
Between October 2023 and September 2024, federal housing programs distributed $33 billion in Tenant-Based Rental Assistance to more than 4 million households, along with $16 billion in Project-Based Rental Assistance. Auditors flagged $1.5 billion in TBRA payments and more than $4.3 billion in PBRA funding for potential eligibility violations.
Working with the Department of Homeland Security, HUD also identified thousands of non-citizens receiving housing benefits despite not meeting federal eligibility standards.
The report builds on earlier warnings from HUD’s Office of Inspector General, which found serious weaknesses in fraud prevention after massive housing spending under Biden’s 2021 American Rescue Plan. Those concerns later proved well-founded.
In early 2024, federal prosecutors charged 70 current and former employees of the New York City Housing Authority in a sweeping corruption case involving kickbacks and no-bid contracts. U.S. Attorney Damian Williams described the takedown as the largest single-day bribery case in Justice Department history.
NYCHA alone received nearly $4 billion in HUD funding in 2023. A subsequent federal audit warned that the agency faced an elevated risk of fraud due to weak internal safeguards.
NYCHA officials say reforms are underway, but critics argue the damage highlights a broader failure of federal oversight during the Biden years.
As HUD investigations continue, the audit is fueling fresh debate in Washington over government spending, accountability, and the proper use of taxpayer funds — issues expected to play a central role as President Trump pushes to restore tighter controls and fiscal discipline across federal agencies.
