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Acting HUD Inspector General urges IT modernization to identify improper payments, prevent fraud
Summary
Acting HUD Inspector General Steven M. Begg told the House Financial Services subcommittee that outdated information systems prevent the department from estimating improper payments in major rental-assistance programs and hamper fraud prevention, and urged program-level fraud-risk assessments and stronger data sharing.
Acting Inspector General Steven M. Begg told the House Financial Services Subcommittee on Oversight and Investigations on the panel’s hearing "Decades of Distortion: Restoring Accountability at HUD" that the Department of Housing and Urban Development cannot reliably estimate improper payments in its largest rental-assistance programs because its payment data are not captured in current systems.
Begg said HUD’s inability to produce reliable improper-payment estimates has persisted for eight consecutive years and affects programs that represented "approximately $50,000,000,000 in 2024," roughly two-thirds of HUD’s annual expenditures. "Because it cannot estimate and identify improper payments in these programs, HUD cannot develop…
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