The Department of Housing and Urban Development (HUD) has ordered public housing authorities nationwide to immediately verify the citizenship status of tenants receiving federally subsidized housing, warning that failure to comply could result in reduced or withheld federal funding.
The directive, issued Friday, follows a joint audit conducted by HUD and the Department of Homeland Security, which identified nearly 200,000 tenants whose eligibility for taxpayer-funded rental assistance could not be confirmed. According to the audit, the questionable cases include roughly 25,000 individuals listed as deceased and approximately 6,000 tenants classified as “ineligible non-American tenants.”
HUD Secretary Scott Turner said the department is adopting a zero-tolerance approach toward misuse of federal housing funds. “We will leave no stone unturned,” Turner said in a statement. “Ineligible non-citizens have no place to receive welfare benefits. With this new directive and audit, HUD is putting new processes in place to safeguard taxpayer resources and put the American people first.”
Under the new order, Public Housing Authorities (PHAs) and private building owners participating in HUD-funded housing programs have 30 days to take corrective action. HUD said compliance will be actively monitored, and agencies that fail to verify tenant eligibility could face sanctions, including partial or full loss of federal funding.
HUD Assistant Secretary for Public and Indian Housing Ben Hobbs described the initiative as a critical reform aimed at restoring integrity to the system. “There are hundreds of thousands of American families on housing waitlists across the country,” Hobbs said. “It is essential we prioritize our limited resources to eligible families only and eliminate waste, fraud, and abuse.”
HUD-funded programs currently provide subsidized rent to low-income families, elderly residents, and people with disabilities. According to HUD data, approximately 970,000 households live in public housing units managed by about 3,300 PHAs nationwide. Many of those agencies already require income verification, but citizenship and eligibility checks have varied in enforcement.
The move aligns with an executive order signed last February by President Donald Trump, which directed HUD and other federal agencies to ensure undocumented immigrants are excluded from receiving taxpayer-funded benefits. At the time, Trump argued that the Biden administration had “repeatedly undercut the goals” of existing federal law that bars most illegal immigrants from accessing government assistance, resulting in what he described as improper spending of public funds.
Supporters of the new HUD directive say it reinforces fairness for American citizens waiting years for housing assistance, while critics warn it could create administrative burdens for PHAs and increase housing instability for vulnerable populations if errors occur during verification.
HUD officials maintain the policy is about accountability rather than punishment. “This is about restoring trust in federal housing programs,” Turner said, “and ensuring that taxpayer dollars are used exactly as the law intends.”