At Least A Quarter Of Every Tax Dollar For HUD Grants May Be Wasted
A federal program that spends $3 billion annually to combat poverty, provide affordable housing and develop needed public infrastructure is plagued with mismanagement and may be wasting a fourth or more of its annual budget, an analysis by The Daily Caller News Foundation Investigative Group has found.
Nine of the 10 most recent audits of funding awarded through the Department of Housing and Urban Developments (HUD) Community Development Block Grants (CDBG) program found serious flaws that allowed significant waste, TheDCNFs analysis found.
The audits questioned how grant recipients spent nearly $39 million of the almost $160 million they received. One of the audits questioned how a recipient spent 69 percent of its expenses. The overall program would waste about $750 million each year if that trend is true for all $3 billion in grants awarded.
The CDBG funds are awarded to state and local governments to improve the quality of life for low- and moderate-income families through a wide variety of programs and development projects. The program was created in 1974 to ?ensure decent affordable housing, to provide services to the most vulnerable in local communities and to create jobs through expansion and retention of businesses,? according to HUDs website.
The program gives local governments significant flexibility in deciding how to spend CDBG funds, which may provide at least a partial explanation for the amount of waste and mismanagement. President Donald Trump proposed axing the program, and HUD Secretary Ben Carson suggested his agency should move funding away from the grants.
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