‘Gross misuse of federal funding’: HUD cuts off funds to LA homeless services agency over fraud concerns



After losing county funding, Los Angeles’ primary homeless services agency has lost federal funding due to its failure to address potential fraud.

The Task Force to Eliminate Fraud, alongside the Department of Housing and Urban Development, sent a letter on Thursday to the Los Angeles Homeless Services Authority to inform the agency that it was immediately suspending funding amid an ongoing probe by HUD’s inspector general. The IG’s office is investigating any potential offenses by the LAHSA and its leadership, according to Fox News Digital, which obtained a copy of the letter.

'Taxpayers will not bankroll LA’s fraud-filled homelessness industrial complex.'

The department reportedly outlined in its letter conflicts of interest, financial mismanagement, fraud, and oversight failures.

HUD has given the Los Angeles Continuum of Care, which is led by the LAHSA, nearly $1 billion over the last five years.

“Suspending LAHSA’s participation in federal government programs is a necessary step in accomplishing that critical mission in Los Angeles,” the letter read, according to Fox News Digital. “LAHSA’s failures have been so severe and pervasive that Los Angeles County has withdrawn its funding for the agency, and the City of Los Angeles is considering doing so as well.”

“HUD cannot ignore LAHSA’s wanton mismanagement of public funds. HUD’s mission is to reduce the plague of homelessness in America,” the agency’s letter continued. “Turning over billions of dollars from American taxpayers to an organization under investigation and suspected of gross misuse of federal funding and ‘obvious fraud’ does nothing to reduce homelessness. Indeed, diverting dollars from worthy programs to LAHSA merely makes the homeless crisis worse.”

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Allen J. Schaben/Los Angeles Times/Getty Images

HUD’s letter quoted a federal judge who stated last year that the LAHSA had committed “obvious fraud” after it allegedly sought full funding for an 88-bed shelter despite maintaining only roughly half occupancy.

HUD also noted that a former top LAHSA official, Va Lecia Adams Kellum, was caught up in a conflict-of-interest scandal. The LAist reported in Feb. 2025 that the executive signed contracts that funneled $2.1 million to a nonprofit where her husband held a senior leadership position. The LAHSA told the outlet that Adams Kellum was “completely recused” from any business related to the nonprofit, and the contracts were inadvertently given to her for signature.

The LAist reported that the LAHSA has an $828 million budget this fiscal year, 46% of which comes from Los Angeles County, 35% from the city of Los Angeles, 11% from the federal government, over 8% from California, and a smaller amount from private philanthropy.

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Scott Turner. SAUL LOEB/AFP/Getty Images.

L.A. County voted last year to cut $300 million in funding from the LAHSA, beginning in July. The county has formed a new department to address homelessness, which it believes will increase accountability by “streamlining bureaucracy to stretch our dollars further, and improving care for people experiencing homelessness.”

HUD Secretary Scott Turner stated that the agency “will fund results, not corrupt failure.”

“While hundreds of millions of taxpayer dollars were funneled to LAHSA with little accountability, homelessness skyrocketed,” Turner wrote. “Taxpayers will not bankroll L.A.’s fraud-filled homelessness industrial complex.”

“For years, American taxpayers have been sending billions of dollars to Los Angeles to house the homeless and other vulnerable Americans. The result? Fraud and corruption. That ends today,” White House Task Force Executive Director Scott Brady stated, according to a HUD press release.

The LAHSA confirmed receipt of HUD’s letter and warned that the department’s actions “could put thousands of formerly homeless people back on the street,” the agency said in a statement provided to Blaze News.

“After initial review, this appears to be a blatant attempt to pull yet more resources from Los Angeles, a city they have targeted time and again, when it is clear that LAHSA has either corrected or is in the process of correcting nearly all of the issues raised,” the agency said. “Local oversight actions have already resulted in strong repairs and reforms to LAHSA’s internal controls, which are accountable and viewable to the public.”

The LAHSA noted that it is also modernizing its financial systems.

“If HUD’s inspector general actually conducts a fair review of LAHSA’s current and future practices, they will clearly see how our systems now allow us to clearly track the work and investments that have resulted in L.A. outperforming the nation by reducing homelessness over the last two years,” the statement continued. “While the review plays out, our immediate priority is to explore all available options to ensure that federal funds continue to support the thousands of people who have been housed through LAHSA and our broader rehousing system.”

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Trump’s HUD Pulls Funds From The Ruined Husk Of A Dying Los Angeles Homeless Agency

Leaking cash to apparent fraud and obviously not solving the problem it was funded to solve, the homeless agency has become a political target, even among Democrats in Los Angeles.

Dallas Baptist University evacuates campus over threats ahead of visit from HUD Secretary Turner



Housing and Urban Development Secretary Scott Turner and Dallas Mayor Eric Johnson (R) were scheduled to appear at Dallas Baptist University this morning, but their event was abruptly canceled after the school received unverified threats.

Dallas Baptist University was evacuated on Thursday morning, the Dallas Morning News reported.

'Out of an abundance of caution, the University has made the decision to cancel classes for Thursday, January 22.'

Turner was scheduled to give remarks at 9:30 a.m. as a part of the HUD Center for Faith's Opportunity Zones Summit. Opportunity Zones are "economically distressed communities," nominated by America's governors.

Johnson was also slated to speak about "public-private partnerships and uplifting underserved communities," according to the Dallas Morning News.

"Emergency response: Out of an abundance of caution, the University has made the decision to cancel classes for Thursday, January 22," a news release from the university reads. "The safety and well-being of our students, faculty, and staff remain our highest priority. Additional updates will be shared as appropriate as the situation continues to be monitored."

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Eric Johnson. Photo by ANDREW CABALLERO-REYNOLDS/AFP via Getty Images

"Dallas Baptist University has been made aware of several unverified threats involving the campus," the university said in a statement to Blaze News.

"While there is no confirmed indication of immediate danger, University leadership is proactively assessing the situation and working closely with law enforcement officials to ensure the safety of our community," the statement added.

The university stressed that the campus was evacuated "out of an extreme abundance of caution" so that it could "determine the legitimacy of these unverified threats." Classes remain canceled for the remainder of the day.

No injuries have been reported.

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Scott Turner. Photo by Alex Wong/Getty Images

Dallas Baptist University was founded in 1898 and is home to over 4,000 students.

"This event has been canceled due to a security concern on campus," a HUD spokesperson told Blaze News.

The Dallas mayor's office did not immediately respond to a request for comment.

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How the 30-year mortgage helped create a permanent housing bubble



You won’t hear many people object to President Trump’s executive order to ban corporate purchases of residential homes. The idea sounds like common sense. But it targets a minor symptom while leaving the real disease untouched — and in some respects, it risks making that disease worse.

Institutional home-buying already peaked during the COVID-era bubble and has receded since then. In most markets, corporate ownership represents a small share of total inventory. Even at its height, it never explained why housing costs exploded for everyone else. High prices created the opportunity for institutional buyers, not the other way around.

The goal should not be cheaper debt. It should be cheaper homes.

Government policy inflated the housing market. Institutional buyers simply responded.

During COVID, the Federal Reserve pushed interest rates toward zero. Mortgage rates fell below 3%. At the same time, the Fed bought roughly $2.7 trillion in mortgage-backed securities, and HUD expanded “affordable homeownership” programs that widened the pool of subsidized buyers. Those policies produced predictable results.

When the government offers 2.5% interest for 30 years — often paired with minimal down payments backed by the FHA — buyers flood the market. Sellers respond by raising prices. The bubble becomes a feature, not a bug.

Institutional buyers entered that environment because it looked like easy money. Higher home prices also pushed rents up, so developers built more homes for long-term rental. Both trends flowed from the same source: a government-shaped market that made housing unaffordable, then subsidized the unaffordability.

Trump now seems focused on the symptom — corporate buyers — while ignoring the machinery that inflated the market in the first place.

He has spent months fighting Federal Reserve Chairman Jerome Powell to bring rates back down toward zero. Meanwhile, the Federal Reserve still holds about $2.1 trillion in mortgage-backed securities. Trump has also announced a plan for Fannie Mae and Freddie Mac to purchase another $200 billion in MBS. The stated goal is to lower mortgage rates.

But the goal should not be cheaper debt. It should be cheaper homes.

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mphillips007 via iStock/Getty Images

Artificially lowering rates props up prices and slows correction. Prices in many markets have begun to soften. That correction should continue. Policies designed to suppress rates will keep prices elevated and risk inflating the next bubble.

That brings us back to corporate home-buying. Even at the COVID peak, institutional buyers — defined as entities owning at least 100 single-family homes — owned about 3.1% of the housing stock. That number has since fallen to around 1%. Investors see the market turning, and they have started backing away.

So Trump’s corporate-purchase ban arrives late, targets a relatively small share of the market, and risks becoming cosmetic cover for policies that keep the bubble inflated.

If Trump wants to drive prices down and permanently realign housing with median incomes, he has to reverse the policies that inflated the bubble. That means attacking the structure, not the headline.

Get government out of the mortgage market. Trump’s next Federal Reserve chair must commit to unwinding the Fed’s mortgage-backed securities portfolio. That $2.1 trillion cushion keeps mortgage rates lower than the market would otherwise set. Those artificially low rates inflate home prices.

End universal “homeownership for everyone” policy. The federal government keeps subsidizing buyers who are not ready to buy. Those programs inject cash into housing demand that would not exist in a real market. The goal should align prices with income, not chase a utopian dream of universal ownership. After decades of subsidies, deductions, and federal credit support, the home ownership rate still sits around the mid-60% range.

Stop chasing near-zero interest rates. A 30-year loan at 2% sounds appealing until you realize what it does to prices. Cheap money bids up homes across the board. Buyers pay the price forever even as politicians brag about the “deal.” Trump should let the market set rates. Recent rate cuts have not restored normal home buying either. Sales remain weak because prices remain too high.

End the 30-year fixed mortgage. Instead of floating longer loans — 50 years? Madness! — the country should move in the opposite direction. Before the New Deal era, short-term mortgages, often three to seven years, dominated the market. Federal policy transformed that structure.

Franklin D. Roosevelt signed the National Housing Act of 1934, establishing the Federal Housing Authority. The FHA insured long-term, fully amortizing mortgages with fixed rates, low down payments, and standardized payment schedules. That system moved the market away from short-term balloon loans and laid the foundation for longer terms.

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jhorrocks via iStock/Getty Images

Congress eventually authorized the 30-year mortgage in 1954. VA loans under the GI Bill and the expansion of Fannie Mae and Freddie Mac later built a secondary market that made long-term fixed-rate loans attractive to lenders.

Government insurance, guarantees, and liquidity support made 30-year fixed mortgages feasible, which is why they represent 80%-90% of U.S. mortgages today. Without those interventions, lenders would not carry that risk.

The larger point remains simple: Sellers can’t charge prices buyers can’t pay. Prices explode only when government subsidies and government-backed long-term debt expand what buyers can “afford” on paper.

Unwind the subsidies. Unwind the guarantees. Unwind the cheap-money machinery. Let incomes, not federal policy, set the ceiling.

Housing should function like other consumer markets, not be engineered by Washington. Prices should reflect what people earn.

That’s the fix. Everything else treats symptoms and pretends to solve the problem.

Here’s What Trump And Other Republicans Can Do To Solve America’s Housing Affordability Crisis

'Potential home buyers would benefit greatly from a whole-of-government approach at the federal, at the state, and at the local level,' said Heritage Foundation economist E.J. Antoni.

Trump DOJ slams door on welfare for illegal aliens, ends Clinton-era loophole draining taxpayer dollars



As the Trump administration continues to clean up the administrative state, the Department of Justice just landed a potentially significant victory. In a major reversal, the Department of Justice has discarded a decades-old interpretation of a law that essentially allowed illegal aliens to collect welfare benefits.

In a 20-page slip opinion bearing Assistant Attorney General T. Elliot Gaiser's signature, the Department of Justice reversed its reading of "federal means-tested public benefit" in light of last year's overturn of Chevron U.S.A. Inc. v. Natural Resources Defense Council Inc.

'The existence of such reliance on federal welfare contradicts the textually expressed congressional policy that aliens must not rely on taxpayer support or burden the public benefits system.'

The previous interpretation, stemming from the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 under Democratic President Bill Clinton, extended welfare to illegal aliens by splitting hairs between mandatory and discretionary spending. The DOJ previously directed the Departments of Health and Human Services and Housing and Urban Development to interpret this phrase to allow the extension of benefits to illegal aliens under discretionary benefit programs.

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Photo by Andrew Harnik/Getty Images

The new opinion rules that the PRWORA includes benefits under both mandatory and discretionary spending programs and withdraws the preceding 1997 opinion, effectively closing this loophole that allowed illegal aliens to collect welfare benefits.

The opinion notes that the PRWORA had many other parts that would seem to resist the old interpretation, particularly since the relevant section of the law was enacted "to address abuse of the welfare system by aliens in the United States."

The opinion says that despite this clearly stated purpose, the old interpretation led to unrestricted discretionary funds flowing to illegal aliens over the ensuing decades from "many federal agencies."

"Today, by some estimates, 59% of illegal alien-headed households receive government welfare," the opinion reads, citing the director of research at the Center for Immigration Studies.

"While some aliens may have come to rely on means-tested public benefits funded through discretionary spending programs, the existence of such reliance on federal welfare contradicts the textually expressed congressional policy that aliens must not rely on taxpayer support or burden the public benefits system," the opinion continued.

"American taxpayers have interests, too, in ensuring that their tax contributions do not encourage illegal entry into the United States. Americans are entitled to rely on duly enacted legislation crafted by their elected representatives and designed to protect the public fisc from abuse."

The Office of Legal Counsel at the Department of Justice did not respond to a request for comment from Blaze News.

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Dead people received taxpayer-funded housing benefits in Colorado, HUD says



More than 300 residents in Colorado received federal housing benefits despite being ineligible, including over 200 deceased individuals, according to an audit.

The New York Post reported on Thursday that an audit by the Department of Housing and Urban Development found that 221 deceased individuals and another 87 ineligible residents received taxpayer-funded housing benefits.

'From deceased tenants to individuals receiving HUD housing benefits who were never supposed to, the Department has questions for HUD-supported housing providers in Colorado, and we expect prompt answers and enforcement action.'

The department is requiring an additional 2,519 beneficiaries to undergo verification to confirm their eligibility.

A source told the Post that HUD found that the fraud involved most of Colorado’s 59 public housing agencies and was “particularly pronounced in the Denver Housing Authority,” the news outlet wrote.

HUD provides approximately $440 million in taxpayer funds to Colorado’s PHAs, which oversee 38,000 leased units. These units are either public housing or covered by housing choice vouchers. Beneficiaries are typically required to contribute roughly 30% of their income toward housing.

HUD is expected to require PHAs to ramp up their beneficiary vetting efforts and remove ineligible recipients. Additionally, PHAs that provide benefits to ineligible beneficiaries will be required to reimburse the misused taxpayer funds. Those who fail to comply will face additional sanctions, the Post reported.

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Photo by Kevin Carter/Getty Images

The department’s findings have reportedly prompted a federal investigation into Colorado’s housing providers.

“From deceased tenants to individuals receiving HUD housing benefits who were never supposed to, the Department has questions for HUD-supported housing providers in Colorado, and we expect prompt answers and enforcement action,” a HUD spokesperson told the Post.

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President Donald Trump, HUD Secretary Scott Turner. Photographer: Shawn Thew/EPA/Bloomberg via Getty Images

Earlier this week, the Washington Examiner reported that HUD sent federal investigators to Minnesota to look into potential housing fraud amid reports that $1 billion in taxpayer funds was funneled primarily to those of Somali descent.

HUD launched an investigation last week into Boston’s alleged “race-based” housing program, claiming that the city’s diversity, equity, and inclusion practices may “violate civil rights protections under the Fair Housing Act and Title VI.”

President Donald Trump unveiled a budget plan in May that proposed drastically cutting HUD’s discretionary funding by over 40%.

Denver Housing Authority did not respond to a request for comment.

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'Rents will come down' — but not in sanctuary cities: Loan agent chronicles homes apparently abandoned by illegal aliens



A Texas real estate loan agent says houses are being abandoned by illegal immigrants.

Deportations combined with updated Federal Housing Administration policies mean fewer foreign residents, both legal and illegal, are qualifying for federal loans.

'That's what corporations love — they love the fact there is so many more people, whether they're legal or not.'

An announcement in late March from the Trump administration shifted FHA policy to stop allowing non-permanent residents access to FHA loans, which are loans guaranteed by the federal government and backed by the taxpayer. According to Congress, an FHA loan requires a down payment of only 3.5% for most borrowers.

DACA recipients, H-1B holders, asylum seekers, and refugees without green cards are some of the categories no longer permitted to use FHA loans. The Trump administration said it also prevented illegal immigrants from accessing loans that they acquired under President Biden.

"Today, HUD terminated Biden's taxpayer-backed FHA mortgages for illegal aliens," Housing and Urban Development Secretary Scott Turner wrote on X in March. "American taxpayers will no longer subsidize open borders by offering home loans to those who enter our nation illegally."

The policy shift left only U.S. citizens, green card holders, and select others eligible for the federal loans. Months later, a loan agent says the changes have resulted in houses being hastily abandoned.

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"This week, I started doing foreclosures on undocumented properties," a content creator named Antts Inc said in a recent viral video.

"Properties that the people had to leave in a hurry. I just left one. Pizza boxes open. Pizza was still there. All the food was still in the pantry. They grabbed whatever valuables they could, left everything else behind. These are foreclosures. So these are homes that were bought using FHA, guaranteed by the government for undocumented people," he explained.

The loan agent said the properties come for inspection tagged as "possible undocumented immigrant" and typically have abandoned furniture or even items like fish tanks with dead fish.

The creator documents many of the houses he visits on his YouTube channel and predicts rents prices will soon start dropping.

"Rents will come down in some states it's already happening! Don't expect them to come down in sanctuary cities or states like California where they all flock to!" he wrote on X.

In Texas, rent costs are already drastically dropping since the same time in 2024.

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According to RentHop, studio rent has dropped by more than 11% since last December, while one-bedroom rental costs have decreased by more than 18.5%. For a two-bedroom unit, the price has gone down by about 17%.

Three- and four-bedroom rentals have stagnated or slightly increased, up by 2.6% and 0.7%, respectively.

"They drove rents up," the Texas resident said about illegal immigrants in another video. "States like California where [illegal aliens] rent one house and there's three families living there and they share the rent. But if you're a single family and you're trying to rent that house now, you gotta pay a ridiculous amount because you are one family competing with three that are living in the other house."

He added, "That's what corporations love — they love the fact there is so many more people, whether they're legal or not."

On RentHop, rent prices in Texas showed a sharp increase under the Biden administration starting in March 2021 and began a sharp decline under the Trump administration in October 2025.

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Democrat-led city's alleged ‘race-based’ housing strategy prompts federal investigation



One Democratic-led city’s housing plan is facing scrutiny from the Trump administration’s Department of Housing and Urban Development.

On Thursday, HUD announced that it had opened an investigation into Boston’s “race-based” housing program, claiming that the city’s diversity, equity, and inclusion practices may “violate civil rights protections under the Fair Housing Act and Title VI.”

'This warped mentality will be fully exposed, and Boston will come into full compliance with federal anti-discrimination law.'

HUD sent a letter to Boston’s Office of Housing in mid-September, stating that the department had reason to believe the city was using federal grants to support a race-based housing plan. The letter cited the city’s website, which described Boston Housing Strategy 2025 as “provid[ing] tools to … reduce racial disparities through homeownership and development opportunities for BIPOC-led organizations.”

Boston’s housing strategy states that its goal is to ensure at least 65% of home-buying opportunities are awarded to “BIPOC” households.

HUD requested numerous documents from Boston to investigate the matter.

The department informed Democratic Mayor Michelle Wu’s office on Thursday that it had opened an investigation into its housing strategy.

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Scott Turner. Photo by Alex Wong/Getty Images

“To further its racialist theory of housing justice, the City’s Fair Housing Assessment promises to ‘target homebuyer outreach’ at ‘Black and Latinx families’ and pressure ‘banks and mortgage lenders to increase their lending in communities of color,’” read HUD’s notification to Boston.

HUD Secretary Scott Turner stated that the department believes the city ”has engaged in a social engineering project that intentionally advances discriminatory housing policies driven by an ideological commitment to DEI rather than merit or need.”

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President Donald Trump, Scott Turner. Photo by Chip Somodevilla/Getty Images

“HUD is committed to protecting every American’s civil rights and will thoroughly investigate the City’s stated goal of ‘integrating racial equity into every layer of city government,’” Turner said. “This warped mentality will be fully exposed, and Boston will come into full compliance with federal anti-discrimination law.”

A city spokesperson told Blaze News, “Boston will never abandon our commitment to fair and affordable housing, and we will defend our progress to keep Bostonians in their homes against these unhinged attacks from Washington.”

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Americans priced out while foreigners pour in: Trump admin report slams Biden for spike in rental costs



The Trump administration's Department of Housing and Urban Development blames rising housing and rental prices on the surge in immigration under Biden.

HUD published the "Worst Case Housing Needs: 2025 Report to Congress" in November, a biennial report that analyzes problems impacting low-income renting families. It defines renters with worst-case needs as those who do not receive government housing assistance and spend more than half of their income on rent or live in severely inadequate conditions, or both.

'The unchecked illegal immigration and open borders policies allowed by the Biden administration continue to put significant strain on housing, pricing out American families.'

HUD argued that the uptick in immigration caused increases in housing demand and, in turn, prices.

"Between 2021 and 2024, the foreign-born population of the United States increased by more than six million — the largest such increase over such a short period in American history. The foreign-born population now stands at more than 53 million individuals, making up the highest share of the American population in history," HUD reported.

The department stated that the country's foreign-born population has grown by 20 million since 2000, representing a 40% increase.

In some regions of the U.S., such as California and New York, immigrants account for up to 100% of the rental growth and over 50% of all owner-occupied growth, HUD added. Nationwide, immigration accounts for two-thirds of rental demand growth, according to the department.

The median monthly housing cost for renters in 2021 was $1,184, increasing nearly 17.5% to $1,391 in 2023, according to the report.

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Photo by Joe Raedle/Getty Images

"The growth in households attributable to noncitizens was 13% between 2019 and 2023, compared to 7% between 2015 and 2019. This further demonstrates that noncitizen households are playing an increasing role in the household growth that is straining the affordable housing supply," the report read.

HUD's report cited several other contributing factors to the affordable rental crisis, including demand-side housing subsidies and the decline in marriage.

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President Donald Trump, Housing and Urban Development Secretary Scott Turner. Photo by Win McNamee/Getty Images

Housing and Urban Development Secretary Scott Turner told Fox News Digital, "The unchecked illegal immigration and open borders policies allowed by the Biden administration continue to put significant strain on housing, pricing out American families."

"These policies have plagued America's housing market, but in President Trump, Americans finally have a leader fighting to restore sanity to American immigration policy," he added.

Turner stated that in 2025, HUD has supported one million homebuyers, including through first-time buyer and refinancing programs. He has called on the Federal Reserve to cut rates to continue the momentum toward affordability.

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