Billions of dollars in taxpayer funds went to “questionable” rental assistance recipients in former President Biden’s final year in office, the Trump administration said in a new report.
This includes about 30,000 deceased tenants and thousands of potential noncitizens, according to the Department of Housing and Urban Development’s “Agency Financial Report” for fiscal 2025.
By comparing its records with a Treasury Department database, HUD found that 30,054 dead tenants were actively enrolled in rental assistance programs or received assistance after they died.
First reported by the New York Post, HUD officials said dead recipients received funds in all 50 states, while a “large concentration” of the funds went to New York, California and the District of Columbia.
“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.
HUD had distributed around $50 billion in federal rental assistance to nonfederal entities in fiscal 2024, which included what it called “questionable” payments.
For the first time, the department evaluated all 4 million tenant records, plus the registration status of more than 21,000 recipient organizations. It uncovered eligibility issues affecting more than 200,000 tenants and identified $5.8 billion in the suspect payments.
Of the potentially ineligible tenants, 29,715 were dead, 9,472 were noncitizens and 165,393 were receiving sums that exceeded their reasonable threshold for assistance.
The evaluated programs are intended to help low-income residents who cannot afford housing.
The report blamed the Biden administration for not providing HUD with effective tools, technology or access to evidence necessary to verify whether the rules governing rental assistance were properly enforced.
“The directive from the Biden Administration to push funding out the door with minimal oversight and the design of HUD’s rental assistance programs placed substantial trust and responsibility in these non-federal entities, such as housing authorities, contract administrators, and landlords, to accurately assess tenant eligibility for two of the most complex rental assistance programs,” the 192-page report read.
The department will reach out to the public housing authorities and other entities to confirm the extent of the fraud. HUD is also implementing procedures to revoke or pause funding, an official told the Post, to determine whether criminal referrals are necessary.
“HUD will continue investigating the shocking results and will take appropriate action to hold bad actors accountable,” Mr. Turner 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.”
