Abbott offers Texas assistance to HUD amid federal housing fraud review

Texas Gov. Greg Abbott has offered the state’s assistance to the U.S. Department of Housing and Urban Development (HUD) as the agency works to identify fraud in federal housing programs following the discovery of billions of dollars in potentially improper payments.

In a letter sent Monday to HUD Secretary Scott Turner, Abbott proposed that Texas participate in a pilot fraud-identification initiative through the Texas Department of Housing and Community Affairs (TDHCA). The offer follows HUD’s announcement that it identified at least $5 billion in potentially erroneous payments across its programs last year.

“We will gladly work with you to develop fraud-prevention measures that ensure federal taxpayer funds, like those in the rental-based assistance programs, are not taken advantage of by bad actors,” Abbott wrote in the letter.

Turner, a former Texas state representative appointed by President Donald Trump to lead HUD last year, recently released a financial analysis warning of fraud risks and weaknesses in the agency’s internal controls. According to HUD, the department used artificial intelligence tools to identify more than 30,000 deceased individuals who were either actively enrolled in rental assistance programs or had received assistance after their deaths.

The financial report also cited examples of noncompliance with internal control standards during the Biden administration.

“The reviews determined that under the prior Administration, HUD experienced a deterioration in financial controls and governance and identified a material weakness affecting internal controls and financial governance across multiple program offices,” the report stated.

Concerns about housing-related fraud have drawn attention nationwide. Multiple federal agencies launched or expanded investigations in Minnesota last month following new disclosures of widespread fraud in the state. Turner said HUD is closely monitoring how federal housing funds are being used there.

“We have investigators that are making sure that any HUD-funded programs in Minnesota are being carried out appropriately,” Turner said in a recent interview. “They receive about $108 million in Minneapolis and there are also about 46 million in public housing assistance there. So, we want to make sure that we’re being good stewards over taxpayer money.”

Abbott contrasted Minnesota’s situation with Texas’ housing assistance programs, noting that approximately 150,000 Texas households receive rental assistance. Some of those households participate in HUD’s Moving to Work (MTW) demonstration program, which was created in 1996 and allows participating agencies greater flexibility in meeting federal requirements while encouraging job training and self-sufficiency. Turner has supported using MTW flexibility to strengthen work requirements for certain recipients.

In his letter, Abbott highlighted TDHCA’s existing anti-fraud measures, stating that the agency combines data from HUD’s Enterprise Income Verification System with additional sources, including “obituaries, funeral notices, landlord confirmation, and powers of attorney,” to prevent improper payments to deceased individuals.

“Every time a fraudulent or improper payment is made, Americans eligible for these programs miss out on assistance and the American Taxpayer is cheated,” Abbott wrote. “I believe TDHCA is well-positioned to work with HUD in identifying ways to better steward these programs.”

Texas officials have also taken steps to examine fraud risks in other benefit programs. Last week, Abbott directed the Texas Workforce Commission and the Health and Human Services Commission to investigate potential childcare fraud within the state.

Housing assistance fraud cases have periodically surfaced in Texas as well. In 2025, a Houston woman pleaded guilty to charges related to emergency rental assistance payments funded through federal COVID-19 relief programs, although the scheme involved properties in Idaho and other states rather than Texas.

HUD has not yet announced whether Texas will be selected to participate in the proposed pilot program, but Abbott’s offer reflects growing pressure on federal and state agencies to tighten oversight of housing assistance programs amid rising concerns about waste, fraud, and abuse.