A December 2025 audit conducted by the U.S. Department of Housing and Urban Development (HUD) identified a staggering volume of improper payments made during the final year of the Biden administration's oversight of federal rental assistance programs.
The report highlighted approximately $77 million in payments sent to nearly 30,000 deceased tenants.
These figures were part of a larger finding of over $5 billion in "questionable" or improper disbursements within the department for fiscal year 2024. The 183-page audit outlined a pattern of lax financial controls that resulted in widespread waste.
In addition to payments made to deceased individuals across all 50 states, the investigation uncovered other major red flags: approximately $5.2 billion was sent to inactive accounts, $150 million went to non-existent Social Security numbers, and another $288 million was paid to households reporting unusually high rent costs. Current HUD Secretary Scott Turner, appointed by the Trump administration, heavily criticized his predecessor’s approach, stating that the Biden administration prioritized the rapid distribution of funds with "minimal oversight" and "failure to implement strong financial controls."
The audit explicitly noted that HUD lacked the necessary technological tools to verify tenant eligibility effectively. The current administration has pledged to investigate the matter thoroughly, potentially freezing funds to responsible entities and pursuing criminal prosecution for those involved in the fraud, with a commitment to safeguarding federal funds.
The report highlighted approximately $77 million in payments sent to nearly 30,000 deceased tenants.
These figures were part of a larger finding of over $5 billion in "questionable" or improper disbursements within the department for fiscal year 2024. The 183-page audit outlined a pattern of lax financial controls that resulted in widespread waste.
In addition to payments made to deceased individuals across all 50 states, the investigation uncovered other major red flags: approximately $5.2 billion was sent to inactive accounts, $150 million went to non-existent Social Security numbers, and another $288 million was paid to households reporting unusually high rent costs. Current HUD Secretary Scott Turner, appointed by the Trump administration, heavily criticized his predecessor’s approach, stating that the Biden administration prioritized the rapid distribution of funds with "minimal oversight" and "failure to implement strong financial controls."
The audit explicitly noted that HUD lacked the necessary technological tools to verify tenant eligibility effectively. The current administration has pledged to investigate the matter thoroughly, potentially freezing funds to responsible entities and pursuing criminal prosecution for those involved in the fraud, with a commitment to safeguarding federal funds.