Press Releases

Today, the House Financial Services Committee is holding an Oversight and Investigations Subcommittee hearing, led by Subcommittee Chairman Dan Meuser (PA-09), to examine how the Department of Housing and Urban Development (HUD) funds and oversees Public Housing Authorities (PHAs).

Read Subcommittee Chairman Meuser’s opening remarks as prepared for delivery:

"Public Housing Agencies, or PHAs, administer HUD’s public housing programs at the local level.

"Combined, these programs account for roughly $40 billion in federal funding annually and serve approximately 9 million Americans through more than 3,300 housing authorities nationwide.

"Sec. Bessent recently estimated 10% of taxpayer funds are lost to fraud, GAO published a report that 10% of government payments are improper, and HUD identified 10% of PHAs fail physical inspections.

"That is the scale of taxpayer exposure we are discussing today.

"Yet despite that level of funding, oversight failures, corruption, and financial mismanagement continue to surface across the country.

"For example: In November 2025, federal prosecutors convicted 70 employees and contractors at the New York City Housing Authority for accepting cash bribes in exchange for no-bid contracts. 

"In Atlanta in 2023, a senior housing authority executive was indicted for falsifying eligibility data to secure subsidized housing benefits for her own family members.

"In 2020, tenant fraud investigations in Philadelphia uncovered hundreds of ineligible recipients, contributing to more than $1.6 million in identified fraud.

"These numerous examples of corruption are only part of the issue; financial mismanagement is equally prevalent.

"For example: HUD took over the Atlantic City Housing Authority in July 2025 after declaring it in substantial default following years of financial mismanagement since 2022.

"These failures are not administrative — they are operational and they affect daily living conditions and quality of life.

"As stated, approximately 5 percent of PHAs fail HUD financial management standards, and roughly 10 percent fail physical condition inspections.

"As well, procurement controls inside many PHAs are often structurally weak – especially considering that many contracts under $10,000 can be issued without competitive bidding.

"In smaller housing authorities, procurement authority is often centralized in one individual.

"And at the property level, some authorities fail to reinvest capital funds or leverage financing tools.

"The lack of controls on procurement, absence of anti-fraud tools, and cases of corruption make HUD a prime candidate for stopping waste, abuse, and fraud.

"That is why the Trump Administration and this Committee have made oversight and enforcement of PHAs a priority.

"Earlier this morning, HUD announced that it was placing the Manhattan Housing Authority in Kansas in substantial default, meaning it has systemically failed achieve HUD’s most basic requirements.

"While disappointing, I am pleased to see HUD is taking its oversight of PHAs seriously.

"As well, HUD under Scott Turner is deploying enhanced data analytics and AI-enabled tracking systems to follow funds from HUD through PHAs and down to subcontractors.

"The Department has created an internal fraud detection strike force and increased physical inspections by 25 percent in 2025.

"Yesterday, alongside Chairman Hill and Subcommittee Chairman Flood, we sent oversight letters to 32 PHAs designated as “troubled” by HUD seeking detailed records on financial management, procurement, and property conditions.

"We will also review high-performing housing authorities to identify replicable management practices, how funds are controlled, and whether residents are receiving the housing conditions federal law requires.

"This Committee intends to ensure those standards are enforced — in partnership with HUD and Secretary Turner — so that federal housing dollars are protected and properly administered. I yield back."