Move over, Tim Walz, because Joe Biden looks to be giving you a run for your money when it comes to fraud.
In the final year of the Biden administration, federal officials sprayed billions of taxpayer dollars meant to keep struggling families in their homes around the country like confetti, sending a shocking slice of that money to dead people, ineligible non-citizens, and tenants collecting more than the law allows.
“A US Department of Housing and Urban Development (HUD) report found more than $5 billion in taxpayer funds went to ‘questionable’ rental assistance recipients during the final year of the Biden administration — including around 30,000 ‘deceased tenants’ and ‘thousands’ of potential non-citizens,” the New York Post reveals.
Unsurprisingly, a “large concentration” of fraud went to the blue states of New York and California, and, of course, Washington, D.C.
“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,” said HUD Secretary Scott Turner 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 Trump’s first administration to strengthen program integrity and ensure taxpayer-funded assistance serves the vulnerable communities it was intended for.”
HUD’s Office of the Chief Financial Officer uncovered $5.8 billion of the “questionable” payments out of nearly $50 billion in total federal rental assistance to public housing authorities, contractors, landlords and other non-federal entities in fiscal year 2024, the 183-page report disclosed.
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 HUD programs are designed to help low-income residents who wouldn’t otherwise be able to afford shelter — and the possible grift means those truly in need could have been left out in the cold.
HUD officials faulted the Biden administration for a directive “to push funding out the door with minimal oversight” as well as rent assistance programs placing “substantial trust and responsibility in these non-federal entities … to accurately assess tenant eligibility.”
Now, HUD will have to reach out to the public housing authorities and other entities to confirm the extent of the fraud — and either pause or revoke funding. Officials will also make criminal referrals when warranted.
“HUD is implementing processes and procedures to revoke or pause funding as part of its efforts to hold bad actors accountable,” one official explained. “Additionally, the Department could make criminal referrals and exercise other enforcement actions once it has confirmed fraud occurred.”
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HUD’s audit exposed massive mismanagement of federal housing programs. From October 2023 through September 2024, Biden’s final year in office. “Between October 2023 and September 2024, $33 billion was spent on Tenant-Based Rental Assistance (TBRA) for more than 4 million households and $16 billion was spent on Project-Based Rental Assistance (PBRA) — all of which the audit reviewed,” the report explains.
The numbers are staggering. HUD flagged more than $1.5 billion in tenant-based aid affecting 200,000 tenants as fraudulent, and more than a quarter of all project-based payments, roughly $4.3 billion, set off similar red flags. On top of that, HUD and DHS identified thousands of ineligible non-citizens receiving Section 8 or Section 9 assistance.
The Biden administration’s fingerprints are all over this mess. The widespread waste, lax enforcement, and lack of accountability were indeed features of how his administration operated.
Neither former HUD Secretary Marcia Fudge nor her deputy secretary Adrianne Todman responded to a request for comment.
This report comes as Gov. Tim Walz (D-Minn.) faces intense scrutiny for more than $9 billion in Medicaid fraud in his state, much of which went to the Somali community.
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