House Financial Services Holds Hearing on Dysfunction and Accountability at HUD

The House Financial Services Subcommittee on Oversight and Investigations held a hearing on April 8 titled “Decades of Dysfunction: Restoring Accountability at HUD.” The hearing focused on waste, fraud, and mismanagement within HUD and the need for transparency, accountability, and operational efficiency, as underscored by the Department of Government Efficiency (DOGE). The sole witness called to the hearing was Mr. Stephen M. Begg, HUD’s Acting Inspector General. 

Subcommittee Chairman Dan Meuser (R-PA) started the hearing by underscoring the importance of affordable housing but noted that HUD’s failure to properly and efficiently utilize taxpayer funds, particularly with regards to improper payments, is putting their mission at risk. He emphasized the importance of transparency, accountability, and modernizing HUD’s IT system and implementing a more robust fraud prevention plan for public housing authorities (PHAs). 

Ranking Member Al Green (D-TX) refuted the legitimacy of DOGE, stating that it is a temporary entity and that giving significant authority to DOGE and its unelected leader with matters regarding HUD is “unthinkable.” The congressman urged the committee not to abdicate their power to DOGE and allow the dismantling of HUD.  

Full Committee Chairman French Hill (R-AR) followed by stating that HUD has failed to uphold its important mission of providing safe and affordable housing. He shared stories of unsafe, unlivable housing conditions at the Little Rock Housing Authority and the unauthorized transfer of funds to deceased citizens, underscoring the waste and fraud of the department. 

Ranking Member Maxine Waters (D-CA) stated in her opening remarks that President Trump and Elon Musk are working to dismantle HUD and increase housing costs with tariffs on building materials. She also noted that she and her fellow committee Democrats have sent three letters requesting a briefing and testimony from HUD Secretary Turner but have not received a single response. She urged her Republican colleagues to uphold their oath to protect the Constitution and conduct proper HUD oversight. 

In his opening statement, Acting Inspector General Stephen M. Begg stated that the Office of the Inspector General does important work to detect and prevent fraud, waste, and abuse in HUD and promote integrity, efficiency, and effectiveness. Begg identified the need to modernize HUD’s IT system to better manage data, improve funding, and ensure that funding is spent properly, and noted that this is particularly important for detecting improper payments and expediting property inspection, particularly regarding lead hazards. Begg shared that his office is dedicated to maximizing taxpayer funds through these improvements. 

Representative Nikema Williams (D-GA) raised concerns about DOGE's access to HUD databases containing sensitive personal information, including medical records and domestic violence survivor addresses. Mr. Begg confirmed that the Chief Information Officer (CIO) oversees data privacy and security, and that his office is conducting an ongoing review of potential improper disclosures. Congresswoman Williams also cited the abrupt termination of 78 Fair Housing contracts on February 27, 2025, asking whether HUD had investigated the legality or reasoning. Mr. Begg noted that the terminations are under litigation but confirmed that his office is monitoring the situation. 

Watch a recording of the hearing here: https://www.youtube.com/watch?v=izuqcZgZew4&t=2857s