The U.S. Department of Housing and Urban Development (HUD) has released an internal financial review showing that billions of dollars in federal rental assistance payments may have gone to deceased or otherwise ineligible recipients during the final year of the Biden administration.
According to the department’s Fiscal Year 2025 Agency Financial Report, HUD’s finance office identified approximately $5.8 billion in potentially improper rental assistance payments out of nearly $50 billion disbursed through two major housing programs in fiscal year 2024. The review flagged concerns in both Tenant-Based Rental Assistance (TBRA) and Project-Based Rental Assistance (PBRA) programs.
Dead Tenants, Possible Ineligibility Among Flagged Payments
HUD’s analysis found that more than 200,000 assistance recipients could not be confirmed as eligible due to data issues or other discrepancies. Among those flagged:
- About 29,700 individuals were listed as deceased yet were still receiving rental aid, or had received it after their deaths.
- Around 9,400 recipients were identified as possible non-citizens who might not qualify under federal eligibility rules.
- Over 165,000 cases involved households receiving more assistance than permitted under local income or payment limits.
Overall, roughly 11 percent of HUD’s rental assistance funds for the period were associated with questionable or potentially improper payments.
What HUD Officials Are Saying
HUD Secretary Scott Turner described the findings as evidence of “significant potential improper payments” and pointed to “process gaps and material weaknesses” that existed under prior oversight arrangements. Turner said the department plans additional reviews and stronger verification procedures to prevent waste, fraud, and abuse. HUD
In a statement included in the agency’s report, Turner noted that previous directives emphasizing rapid disbursement of funds contributed to weaknesses in eligibility oversight. HUD now intends to work with local housing authorities and funding partners to confirm whether fraud occurred and, where appropriate, pause or revoke funding and pursue enforcement action.
How the Programs Work
Federal rental assistance programs like TBRA and PBRA are designed to help low-income households afford safe housing by subsidizing rent costs. TBRA helps families who use vouchers in the private rental market, while PBRA ties subsidies to specific developments or properties.
Local public housing authorities, landlords, and non-federal entities administer and certify eligibility, which historically has placed much of the responsibility for verification outside HUD’s direct control.
Next Steps and Investigations
HUD officials say they will contact housing authorities and other partners to verify eligibility data and assess the full extent of improper payments. The department also indicated that criminal referrals and other enforcement actions could be made where confirmed fraud or wrongdoing is identified.
While this report focuses on internal financial controls and risk management, it arrives amid broader scrutiny of federal and state program integrity issues in other areas of government spending.
What This Means for Taxpayers and Recipients
Although the report identifies potential improper payments, HUD’s findings are preliminary flags rather than confirmed cases of fraud in all instances. Additional data verification and follow-up reviews will determine how much of the $5.8 billion involves actual eligibility violations versus errors or reporting anomalies.
HUD has acknowledged that strengthening oversight and eligibility verification tools — including advanced analytics, automation, and other mechanisms — is a priority moving forward.
Final Notes
The flagged payments spanned all 50 states, with some of the largest concentrations in major metropolitan areas. Housing assistance programs serve millions of households each year, and federal officials say ensuring integrity in these programs is crucial to making sure taxpayer dollars reach the people they were intended to help.
