HUD report finds billions in improper rental assistance payments, including deceased and ineligible recipients

HUD identified $5.8 billion in questionable payments within $50 billion federal rental assistance distributed in FY2024, according to the department's 2025 financial report to Congress.

Report found misallocated funds to over 200,000 ineligible tenants, including 30,054 deceased individuals, non-citizens, improper Social Security numbers, and unmatched tenant records.

Misallocations were concentrated in large metropolitan areas such as New Orleans; government estimates more than $664 million may result from deceased tenants, excessive rents, and record errors.

HUD will assess the extent of fraud, contact housing authorities to confirm wrongdoing, consider enforcement actions and criminal referrals, and enhance program integrity using prior initiatives.

Separately, summaries note a reported $9 billion Medicaid fraud probe in Minnesota, with allegations involving the Somali community and increased scrutiny of Governor Tim Walz.