The U.S. Department of Housing and Urban Development has identified over $5 billion in potential payment errors in rental assistance programs during fiscal year 2024, the final year of the Biden administration. The findings highlight improper payments, process gaps, and material weaknesses in voucher and project-based assistance. Officials plan to investigate and strengthen controls to protect taxpayer funds.
The Department of Housing and Urban Development's annual financial report for fiscal year 2024 revealed more than $5 billion in potential payment errors related to rental assistance programs under the previous administration. These errors affected key initiatives, including the Tenant-Based Rental Assistance voucher program and Project-Based Rental Assistance, due to identified process gaps and material weaknesses.
HUD Secretary Scott Turner described the situation in a statement, saying, “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.” He added that the department would investigate the results, hold bad actors accountable, and build on efforts from President Trump's first term to enhance program integrity and direct aid to vulnerable communities.
Specific issues included $77 million in payments to 29,715 deceased tenants and $150.3 million to nearly 9,500 individuals with Social Security numbers not meeting Social Security Administration rules. Additionally, $287.6 million was disbursed to over 165,000 recipients for excessively high rents. HUD is now developing methods to better monitor funding for public housing authorities and federal grant recipients.
Since President Trump's return to office, HUD has initiated audits of public housing authorities to prevent unauthorized use by non-citizens. In March, HUD and the Department of Homeland Security signed a Memorandum of Understanding to share information on illegal immigrants in the housing system. DHS Secretary Kristi Noem stated, “The Biden Administration prioritized illegal aliens over our own citizens, including by giving illegal aliens taxpayer-funded housing at the expense of Americans. Not anymore.” She emphasized collaborative efforts to curb abuse of public benefits.
