Emmer Highlights Minnesota Fraud, New Bill, and Housing Affordability During Financial Services Committee Hearing with Housing and Urban Development Secretary Scott Turner

WASHINGTON - Congressman Tom Emmer (MN-06) discussed the ongoing Minnesota fraud fiasco, housing affordability, and Emmer’s Securing Facilities for Mental Health Services Act with the U.S. Department of Housing and Urban Development (HUD) Secretary Scott Turner during a House Financial Services Committee hearing.

EMMER: Secretary Turner, it’s great to see you again. Housing affordability is one of the most pressing challenges facing Minnesota families. Across urban, suburban, and rural communities, families are being squeezed by rising home prices and a housing supply that simply has not kept pace with demand. Outdated and burdensome federal regulations, slow permitting processes, rigid zoning laws, and financing barriers are all factors that make it more difficult and expensive to meet America’s housing needs. President Trump has made affordability a central focus of his presidency, reversing the failed policies of the Biden Administration and cutting red tape that was only increasing costs and fueling runaway inflation. By updating outdated programs and removing regulatory roadblocks – rather than relying solely on direct federal spending – we will allow this country to meet its housing demands and make housing affordable again for hardworking Americans. Mr. Secretary, HUD has a responsibility not only to expand access to housing but also to ensure that taxpayer dollars are properly safeguarded. My home state of Minnesota has become a national example of the chaos that occurs when oversight collapses and incompetence surges in the governor’s mansion. Following the uncovering of a massive $9 billion welfare fraud scheme that went unaddressed under Governor Tim Walz’s watch, you, Mr. Secretary, proactively deployed HUD investigators to Minnesota to provide much-needed fiscal oversight. And on behalf of law-abiding taxpaying Minnesotans, I want to thank you for taking decisive action where our governor has failed. It’s been reported that HUD paid out nearly $85 million in fraudulent federal housing assistance payments to Minnesota during the last year of former President Biden’s presidency. Is that correct, Secretary Turner?

TURNER: Yes, sir, those were our findings. 

EMMER: And it is my understanding that of this total, half a million dollars was paid out to dead Minnesota residents, while another quarter of a million dollars went to individuals whose Social Security numbers couldn’t be verified, is that correct?

TURNER: Yes, sir. 

EMMER: And when we say that individuals whose Social Security numbers could not be verified, Mr. Secretary, what exactly do you mean?

TURNER: Well, you think about it - there may be numbers missing, there may be smudges on a number. Oftentimes, that means they are here illegally. 

EMMER: So, likely they are illegal aliens that have taken advantage of the system? 

TURNER: Right.

EMMER: In other words, as American families struggle to afford housing and keep up with everyday costs, the federal government was providing assistance to those here illegally, taking resources away from the citizens these programs are actually created to help. It’s abundantly clear to me that those who lined their pockets by defrauding the American people, along with those who did nothing to stop it, must be held accountable. How can HUD hold these individuals’ feet to the fire and potentially recoup these fraudulent payments?

TURNER: Yes sir, thank you. As we go through this analysis, continued analysis and investigation, we will use the full extent of the law to enforce the law and to bring the proper and appropriate punishment to those who have defrauded the American people. 

EMMER: What additional authorities does HUD have to examine other areas where Governor Walz and Minnesota AG Keith Ellison have been negligent in their stewardship of the people of Minnesota?

TURNER: Yes sir, we will continue to investigate. We have actually boots on the ground now, as you know, in Minnesota. Minnesota has received about $150 million in housing assistance so we want to make sure that those funds are being used appropriately and we also have partnerships across the entire federal government, and in particular, agencies, that we can utilize to make sure people are being held accountable. 

EMMER: This is the new fair housing investigation that you’re engaged in? 

TURNER: Yes sir, we do have a task force to do so. 

EMMER: I see that my time is about to expire, so I’d like to quickly highlight the Securing Facilities for Mental Health Services Act, which I partnered with Representative Torres to reintroduce last week. We have a mental health crisis in this country, all while having a shortage of care facilities. Under current law, inpatient psychiatric hospitals are prohibited from accessing mortgage assistance through HUD’s Section 242 program since they treat patients over an extended period of time. Our Securing Facilities for Mental Health Services Act reverses this prohibition, alleviating the inpatient bed shortage across the country and encouraging the expansion of psychiatric inpatient hospitals. Mr. Secretary, can I get your assurance that we will work together on this much-needed legislation, so we can ensure that Americans with mental health challenges are able to receive the treatment they deserve and need?

TURNER: Yes sir, happy to work with you.