As the nation zeroes in on Minnesota amid revelations of exposure of alleged widespread fraud at child learning centers, largely run by Somalis, it seems every overturned rock reveals another hidden crime. Now, HUD Secretary Scott Turner says he has “boots on the ground” in Minnesota to investigate and prevent fraud in HUD-funded housing.
HUD Turns on the Lights
Turner appeared on Washington Watch with Tony Perkins on January 12 to discuss his agency’s efforts in Minnesota:
“We have found that there is likely over $84 million in ineligible assistance that was given to the state of Minnesota during the Biden administration, including almost $500,000 in improper assistance to over 500 dead tenants.”
On Thursday, January 23, HUD announced the department had conducted an audit with the Department of Homeland Security (DHS) into all tenants across HUD-funded housing nationwide. In a press release, HUD said it discovered “nearly 200,000 tenants requiring eligibility verification, nearly 25,000 deceased tenants, and nearly 6,000 ineligible non-American tenants.”
All Public Housing Authorities (PHAs) and owners participating in HUD-funded housing have 30 days to take corrective action to address these findings, the press release said.
Where It Began
Joe Biden signed the American Rescue Plan Act of 2021, which appropriated $5 billion for “new incremental , the renewal of those vouchers (EHVs), and fees for the cost of administering the EHVs and other eligible expenses defined by notice to prevent, prepare, and respond to coronavirus.”
Biden’s Department of Housing and Urban Development relaxed verification requirements
for its EHV program that made it easier for illegal aliens to receive free housing with taxpayer funds.
In a May 5, 2021, notice, Dominique Blom, then-General Deputy Assistant Secretary for Public and Indian Housing, wrote:
“ may adopt policies to admit EHV applicants who are unable to provide the required SSN or citizenship documentation during the initial eligibility determination. As an alternative requirement, such individuals must provide the required documentation within 180 days of admission to be eligible for continued assistance, pending verification, unless the PHA provides an extension based on evidence from the family or confirmation from the or other partnering agency that the family has made a good-faith effort to obtain the documentation. If a family member appeals secondary verification of immigration documents, PHAs are reminded that assistance may not be delayed, denied, reduced or terminated on the basis of immigration status pending the completion of the appeal as described in § 5.514(e).” (bold-type added)
Secretary Turner called it a “lack of stewardship,” and “gross negligence,” and told Perkins it seemed “coordinated.”
On December 11, 2025, HUD issued a report, “Worse Case Housing Needs 2025,” which said, the “flood of foreign-born individuals” who entered the United States illegally under the Biden administration “contributed to the sharp increases in housing costs for the American people.”
The report indicates Biden’s open border policy accounted for 100% of all rental price growth and more than one-half of all growth in owner-occupied housing in states like California and New York in recent years. Nationwide, the foreign-born population accounted for two-thirds of growth in rental demand, the report found.
“The foreign-born population in our country increased by 6 million people – the largest such influx over such a short period in American history,” Turner told FOX’s Maria Bartiromo. “We cannot forego the thought that because a record number of illegal aliens came to our country under Biden, prices have risen and supply has been squeezed.”
HUD cited data from the Center for Immigration Studies that suggests there are more than 15 million illegal aliens in the US, who make up nearly 30% of all foreign-born people in the country.
Turner also told Perkins: “Just here at HUD, we found that over 59% of illegal alien families use one or more of our welfare programs here in America, costing about $42 billion a year. And so, with that we have to turn the faucet off and use American taxpayer money to serve the American people and American people only.”
“We are very intentional and focused on that at HUD as it pertains to housing and the programs that come out of our agency,” he continued.
Minnesota’s Race-Based Housing
On January 13, HUD’s Office for Fair Housing and Equal Opportunity (FHEO) put the City of Minneapolis on notice. It launched another investigation into the city’s race-based housing plans, which Turner said may violate the Fair Housing Act and Title VI of the Civil Rights Act of 1964.
