Trump administration investigates $5 billion in possible improper payments during Biden era

The Department of Housing and Urban Development (HUD) announced an investigation into possible improper payments totaling $5 billion during the Biden administration, warning of potential abuse of taxpayer funds. As reported by Secretary Scott Turner, suspicious payments have been identified in two major rental assistance programs: Tenant-Based Rental Assistance (TBRA) and Project-Based Rental Assistance (PBRA).

The investigation was uncovered after HUD released its 2025 Annual Financial Report, which found possible irregularities dating back to the Joe Biden years, when the secretary was Marcia Fudge. Specifically, possible "improper payments" were found, as well as "process gaps" and "material weaknesses" at TBRA and PBRA.

As reported exclusively by The New York Post, the payments went to approximately 30,000 "deceased tenants" and "thousands" of potential non-citizens. The main states involved would be New York and California, as well as Washington, D.C. The payments noted were made between 2023 and 2024.

"The around 11% of taxpayer dollars from HUD went to more than 200,000 possibly ineligible tenants — of whom 29,715 (around 14%) were dead, 9,472 (4%) were non-citizens and 165,393 (82%) were receiving sums that exceeded the threshold for assistance in their geographic region, particularly in New Orleans and other large metro areas," the NYP noted.

Scott Turner, secretary of Housing and Urban Development (HUD), explained the situation through a statement and detailed the steps to be taken.

"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 said.

"HUD will continue investigating the shocking results and will take appropriate action to hold bad actors accountable. 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," Turner added.

Turner's announcement comes amid national outrage over a potential fraud case uncovered in Minnesota, in which hundreds of millions of dollars allegedly went to phantom organizations.