HUD disclosed a material weakness in its financial oversight.

True

Evidence from credible sources supports the statement as accurate. Learn more in Methodology.

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oversight

The AFR or other HUD documentation formally states and describes a disclosed material weakness in HUD's financial controls.

Source summary
HUD released its FY25 Agency Financial Report to Congress and said advanced data analytics uncovered more than $5 billion in potential improper payments in Tenant-Based and Project-Based Rental Assistance during 2024. The department disclosed a material weakness, identified process gaps, and said it will implement new financial controls and track how Public Housing Authorities and grantees spend HUD funds. Secretary Scott Turner pledged investigations and accountability and framed the findings as failures of the prior administration's controls.
Latest fact check

Evidence indicates that HUD did formally disclose a material weakness related to its financial oversight in connection with its Fiscal Year 2025 Agency Financial Report and the associated financial statement audit. HUD’s Office of Inspector General, in its audit of HUD’s FY 2025 financial statements, discusses material weaknesses in internal control over financial reporting, and HUD’s own communications about the FY25 AFR state that, after identifying process gaps and weaknesses, the Department disclosed a material weakness to increase transparency and accountability for fixing financial oversight going forward.

Therefore, the verdict is True because HUD’s audited financial reporting for FY 2025 includes disclosure of a material weakness in internal controls tied to financial oversight, and HUD’s public summary of its FY25 AFR explicitly notes that it disclosed such a material weakness.

Timeline

  1. Update · Jan 01, 2026, 12:43 PMTrue
    Evidence indicates that HUD did formally disclose a material weakness related to its financial oversight in connection with its Fiscal Year 2025 Agency Financial Report and the associated financial statement audit. HUD’s Office of Inspector General, in its audit of HUD’s FY 2025 financial statements, discusses material weaknesses in internal control over financial reporting, and HUD’s own communications about the FY25 AFR state that, after identifying process gaps and weaknesses, the Department disclosed a material weakness to increase transparency and accountability for fixing financial oversight going forward. Therefore, the verdict is True because HUD’s audited financial reporting for FY 2025 includes disclosure of a material weakness in internal controls tied to financial oversight, and HUD’s public summary of its FY25 AFR explicitly notes that it disclosed such a material weakness.
  2. Original article · Dec 30, 2025

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