Officials from the US Department of Housing and Urban Development (HUD) found more than $5 billion in taxpayer funds went to “questionable” rental assistance recipients, including around 30,000 “deceased tenants” and “thousands” of potential non-citizens, all stamped for approval under the final year of Joe Biden’s presidency.
According to a copy of HUD’s “Agency Financial Report” for fiscal year 2025 obtained by the New York Post, recipients included approximately 30,000 deceased tenants and thousands of potential non-citizens, with a “large concentration” of the funds funneled directly to New York, California and Washington, D.C., with deceased recipients getting funds in all 50 states.
Through an automation that compared a U.S. Treasury database to HUD’s records, the bombshell report uncovered 30,054 deceased tenants who were either actively enrolled in rental assistance programs or had received assistance after they passed.
The department also found the possibly problematic payments through its own internal financial review and analytics, according to the report, meaning the fraud would have gone undetected if still under the eye of the Biden administration.
“A massive abuse of taxpayer dollars not only occurred under President Biden’s watch, but was effectively incentivized by his administration’s failure to implement strong financial controls resulting in billions worth of potential improper payments,” HUD Secretary Scott Turner said in a statement provided to The Post.
“HUD will continue investigating the shocking results and will take appropriate action to hold bad actors accountable,” he said.
“Additionally, the Department is advancing efforts made under President Trump’s first administration to strengthen program integrity and ensure taxpayer-funded assistance serves the vulnerable communities it was intended for.”
It was discovered that in fiscal year 2024, HUD distributed around $50 billion in federal rental assistance to non-federal entities, including $5.8 billion of what the report describes as “questionable payments.”
HUD officials directly blamed the Biden administration for a directive “to push funding out the door with minimal oversight.”
In the report, HUD alleges that the Biden administration failed to provide the department with the tools needed to verify whether entities were enforcing “the intricate rules governing rental assistance.”
The report also noted that HUD’s rental assistance programs “placed substantial trust and responsibility” in the non-federal entities receiving the funds.
As for next steps, officials said HUD must now confirm whether fraud occurred and the extent of it before it can determine whether funding should be paused or revoked and if criminal referrals are necessary.
“HUD is implementing processes and procedures to revoke or pause funding as part of its efforts to hold bad actors accountable,” an official told The Post.
“Additionally, the Department could make criminal referrals and exercise other enforcement actions once it has confirmed fraud occurred.”
This is an ongoing story. Check back for further updates.