HUD finds billions in possible payment errors under Biden admin
The Department of Housing and Urban development reported it found more than $5 billion in potential improper payments in its 2025 financial report to Congress after using advanced data analytics for the first time. The review identified numerous problems – about $50 million in payments that didn’t match tenant records, $77 million paid to deceased tenants, $250 million to recipients with improper Social Security numbers, $287 million for excessively high rents – and roughly $5.2 billion paid to businesses that had not been validated to do business with the federal government. HUD Secretary Scott Turner called the findings evidence of weak financial controls under the Biden governance and said the department will investigate,hold wrongdoers accountable,and adopt stronger tracking and oversight of public housing authorities and grantees. The report and officials noted that improper payments are a persistent governmentwide issue and not unique to any single administration.
HUD finds billions worth of possible payment errors ‘incentivized’ under Biden administration
The Department of Housing and Urban Development announced on Tuesday that it discovered possible Biden administration-era payment errors totaling more than $5 billion in its 2025 financial report to Congress.
The department said that it was the first time advanced data analytics had been used to examine payments. The review discovered “significant potential improper payments, process gaps, and material weaknesses,” HUD said.
“A massive abuse of taxpayer dollars not only occurred under President [Joe] 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 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 [Donald] Trump’s first administration to strengthen program integrity and ensure taxpayer-funded assistance serves the vulnerable communities it was intended for,” he added.
The government possibly made about $50 million in payments that do not match tenant records, $77 million to deceased tenants, $250 million to recipients with improper Social Security numbers, and $287 million to those with excessively high rents.
The majority of the improper payments were made to businesses that had not been validated to do business with the federal government. Those payments totaled around $5.2 billion.
HUD noted that it will improve processes going forward.
“HUD will continue to implement new processes to track how Public Housing Authorities (PHAs) and HUD-funded grantees spend the funds they receive, ensuring efficiency, transparency, and accountability at every level,” the department said.
HUD SECRETARY NONCOMMITTAL ON STATUS OF 50-YEAR MORTGAGE PROPOSAL
Improper payments have been an issue that the Trump administration has been looking to solve, although they aren’t unique to the Biden administration.
An independent watchdog report last week found more than $200 million in Medicaid program payments were made to dead people from 2021 to 2022. Aner Sanchez, deputy regional inspector general in the Office of Audit Services, told the Associated Press that “improper payments are not unique to one state, and the issue continues to be persistent.”
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