Dead People Getting Housing Benefits

HUD Secretary Scott Turner announced a proposed rule that would close a longstanding loophole allowing illegal aliens to benefit from taxpayer-funded public housing, a move that could redirect $218 million in federal spending back to eligible American citizens waiting for housing assistance.

Story Highlights

  • HUD-DHS audit discovered approximately 24,000 illegal aliens and ineligible residents occupying public housing through mixed-status household arrangements
  • New rule would require proof of citizenship or eligible immigration status for every resident in HUD-funded housing, ending the mixed-status household loophole
  • Audit also identified nearly 25,000 deceased individuals still receiving housing benefits and nearly 6,000 other ineligible non-citizens
  • Public Housing Authorities face a 30-day deadline to verify tenant eligibility or face sanctions and funding recapture
  • Housing advocates vow legal challenges, claiming the rule is unlawful and threatens family separation

Audit Reveals Massive Eligibility Failures

The joint HUD-DHS audit uncovered shocking evidence of systemic failures in verifying tenant eligibility across federally funded housing programs nationwide. Nearly 200,000 tenants required eligibility verification, revealing gaps that allowed thousands of ineligible individuals to exploit programs intended for American citizens and lawful residents. The audit identified nearly 25,000 deceased tenants still receiving benefits and approximately 24,000 illegal aliens and fraudsters residing in roughly 20,000 mixed-status households. These findings vindicate concerns that lax enforcement under previous administrations allowed widespread abuse of limited housing resources while eligible Americans remained on waitlists.

Closing the Mixed-Status Household Loophole

Secretary Turner’s proposed rule directly targets mixed-status households where some residents qualify for assistance while others lack citizenship or eligible immigration status. Current regulations have created what the administration characterizes as a roommate loophole, allowing ineligible individuals to benefit indirectly from taxpayer-subsidized housing. The new rule would require every household member to demonstrate U.S. citizenship or eligible immigration status, not just the primary leaseholder. This represents a significant policy shift from previous interpretations that focused primarily on head-of-household eligibility. The administration argues this change merely enforces the original intent of Section 214 of the Housing and Community Development Act of 1980.

Swift Enforcement and Financial Recovery

HUD issued a 30-day deadline for Public Housing Authorities and property owners to review tenant eligibility reports from the newly integrated SAVE system and initiate corrective actions. This compressed timeline reflects the administration’s urgency in addressing what officials describe as wasteful misappropriation of taxpayer dollars. PHAs failing to comply face sanctions, and HUD will recapture funding previously paid on behalf of ineligible and deceased tenants. The administration projects the rule could redirect approximately $218 million annually once fully implemented. HUD also launched a hotline at 1-800-347-3735 for Americans to report illegal aliens and criminal activity in HUD-funded housing, empowering citizens to help restore program integrity.

Prioritizing American Citizens Over Illegal Immigration

Secretary Turner frames the rule as essential fiscal responsibility, stating that American dollars should benefit American citizens. Eligible American families languish on waitlists for years while limited housing resources are diverted to individuals with no legal right to be in the country. This policy directly aligns with President Trump’s Executive Order 14218, “Ending Taxpayer Subsidization of Open Borders,” and the 2025 Memorandum of Understanding between HUD and DHS titled “American Housing Programs for American Citizens.” The administration’s approach represents a common-sense correction to years of permissive policies that prioritized illegal immigrants over law-abiding citizens. Critics may claim the rule threatens families, but the real threat is to taxpayers forced to subsidize benefits for those who entered illegally while eligible Americans wait.

Legal Challenges and Implementation Timeline

Housing advocates have vowed to challenge the rule in court, with the National Housing Law Project’s Executive Director stating they defeated a similar proposal during Trump’s first term and are ready to fight again. Organizations claim the rule is unlawful and warn of family separation and increased homelessness. However, the administration successfully integrated all HUD Section 8 and Section 9 tenant files into the SAVE verification system in early 2026, establishing the infrastructure needed for enforcement. While the formal rulemaking timeline remains unspecified, HUD has already implemented immediate verification requirements. The administration’s determination and systematic approach suggest this effort will prove more resilient than previous attempts, particularly with coordinated support from DHS and clear executive authority backing the policy.

The proposed rule reflects the Trump administration’s commitment to ending the taxpayer subsidization of illegal immigration while ensuring limited federal housing resources serve eligible American citizens first. Despite inevitable legal opposition from advocacy groups that prioritize illegal aliens over Americans, the administration has built a stronger foundation for implementation through interagency coordination, comprehensive auditing, and integrated verification systems that expose the true scope of eligibility failures under previous administrations.

Sources:

HUD News Release HUD-NO-26-015

HUD News Release HUD-NO-26-008

HUD moves to end assistance for families with mixed immigration status – Politico

HUD Secretary Turner Testimony January 21, 2026

Justice Department Office of Legal Counsel Concludes Immigrant Welfare Eligibility Rules Apply

HUD proposes rule that would force noncitizens from public housing – WABE