The U.S. Housing and Urban Development (HUD) released its Fiscal Year 2025 (FY25) Agency Financial Report (AFR) to Congress.
In the report, HUD’s Office of the Chief Financial Officer (OCFO) used advanced data analytics to examine all Tenant-Based Rental Assistance (TBRA) and Project-Based Rental Assistance (PBRA) payments made in 2024. Through a series of internal management reviews, HUD identified significant potential payment errors totaling more than $5 billion.
After identifying process gaps and weaknesses, HUD disclosed a material weakness to be transparent about the inherent risks that existed under the Biden administration. It also seeks to fix financial oversight moving forward. Further, 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.
“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,” HUD Secretary Scott Turner 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.”
The AFR is HUD’s annual report on how it manages public funds. HUD’s rental assistance programs provide critical housing support to deserving communities across the nation. Specifically, the Tenant-Based Rental Assistance (TBRA) program helps families afford safe housing through vouchers they can use in the private market. The Project-Based Rental Assistance (PBRA) program provides rental subsidies tied to specific properties to ensure long-term affordability.