Hearing – Inspectors General for the Department of Transportation and the Department of Housing and Urban Development

Benefits Fraud and Improper PaymentsHouse Appropriations Subcommittee on Departments of Transportation, and Housing and Urban Development, and Related Agencies · 2026-03-05 · 119th Congress
The House Appropriations Subcommittee on Transportation, HUD, and Related Agencies held this hearing to review the fiscal year 2025 oversight work of the Department of Transportation and Department of Housing and Urban Development Inspectors General ahead of the fiscal 2027 budget cycle. Begins at 0:04:38
Transcript
Highlights

Title

DOT and HUD Inspectors General testify on fraud, staffing, and oversight

Purpose

The House Appropriations Subcommittee on Transportation, HUD, and Related Agencies held this hearing to review the fiscal year 2025 oversight work of the Department of Transportation and Department of Housing and Urban Development Inspectors General ahead of the fiscal 2027 budget cycle. Witnesses Mitch Behm (DOT Deputy IG) and Brian Harrison (HUD Acting IG) discussed air traffic control modernization, improper payments, staffing cuts, disaster recovery funding, and fraud prevention. Members also pressed the witnesses on withheld infrastructure grants and the lack of Senate-confirmed IGs at either department. Begins at0:04:38

Who spoke

Chairman Steve Womack (R-AR)0:04:38: Opened by noting the subcommittee provided $113 million to DOT OIG and $144.5 million to HUD OIG in FY260:05:37, and warned against repeating NextGen's cost overruns as FAA's $17.5 billion air traffic control modernization proceeds0:22:10; later questioned witnesses on improper-payment trends1:16:29 and thanked members for securing $200 million for truck parking1:38:16.

Rep. James Clyburn (D-SC), Ranking Member0:07:23: Raised concerns about the Trump administration's "blatant disregard" for established law and the federal hiring freeze's effect on core government functions0:08:17; criticized the lack of Senate-confirmed IG nominees more than a year after the prior IGs were fired0:10:15; pressed on the impact of DOT losing over 4,000 employees0:26:31 and HUD's fair housing enforcement staffing1:20:06.

Mitch Behm, DOT Deputy Inspector General0:11:30: Said DOT OIG achieved a $25 return for every dollar appropriated in FY250:12:25; cited FAA air traffic controller staffing at critical facilities below target by at least 15%0:12:53, NextGen's $15 billion spent over 20 years across 50 audit reports0:22:56, and confirmed no current audit work on grant funding pauses0:40:34 or airline passenger data sharing with DHS1:13:33.

Brian Harrison, HUD Acting Inspector General0:16:16: Reported FY25 results of $227 million in questioned costs, $80 million in restitution, 90 individuals charged and 85 convictions0:17:44; said HUD's lack of subrecipient data infrastructure prevents tracking where grant money is spent0:44:17, with improper-payment estimates for two major rental assistance programs due later this year1:09:53; confirmed no Arizona grantees currently flagged as high-risk0:56:07.

Rep. John Rutherford (R-FL)0:31:14: Asked about HUD's "Do Not Pay" system lapse and whether employees face discipline for bypassing eligibility checks tied to $212 million in improper payments0:34:19; asked about CDBG disaster relief fraud risk across inconsistent state processes0:35:56; later followed up on the FMC CDL oversight audit timeline1:24:29 and air traffic controller staffing shortfalls, including New York TRACON near 40% capacity shortfall1:26:36.

Rep. Mike Quigley (D-IL)0:37:14: Noted only 25% of those needing housing assistance receive it and Chicago's voucher waitlist has 5-15 year wait times0:37:46; asked whether OIG has evaluated impacts of paused transportation grant funding in New York, New Jersey, and Chicago0:39:47; asked about the status of DOT IG's audit of FAA's DCA airspace oversight following the DC crash, expecting a final report this fall0:41:03.

Rep. Stephanie Bice (R-OK)0:42:02: Asked about the FAA contract tower program, including Wiley Post Airport in Oklahoma City0:42:34; asked Harrison about HUD grant modernization challenges0:43:26; questioned Behm about DOT OIG's coordination with Homeland Security Investigations on CDL fraud and cargo theft, receiving assurance the coordination has been "more than satisfied"0:47:49.

Rep. Ritchie Torres (D-NY)0:48:38: Contrasted an estimated $1 billion per day cost of the Iran conflict with the administration's failure to request a supplemental for California's $34 billion wildfire recovery needs0:49:44; asked both IGs to commit to investigating withholding of disaster and transportation funds from California and other states0:52:04, receiving a "yes" from Harrison0:52:37 and a more cautious response from Behm0:52:52.

Rep. Juan Ciscomani (R-AZ)0:53:38: Asked Harrison about low HUD-VASH voucher utilization rates for homeless veterans, citing high housing costs and VA referral thresholds as barriers0:54:28; asked Behm about clarity and consistency in DOT's Notice of Funding Opportunity guidance for Arizona DOT0:56:59; later asked about DOT's oversight readiness for autonomous vehicles1:33:35 and coordination with border agencies on freight movement1:34:48.

Rep. Bonnie Watson Coleman (D-NJ)0:58:57: Questioned the FAA's sole-source contractor Peraton's role and function0:59:23; asked about staffing levels at each IG office (DOT: ~330; HUD: 432)1:00:24; pressed Harrison on the demographics of HUD fraud defendants, particularly whether vulnerable tenants are being harmed1:02:18; later asked Behm whether he was involved in the dispute over naming the Gateway tunnel as a condition for funding1:28:50.

Rep. Dale Strong (R-AL)1:04:40: Described North Alabama's growth from Space Command, Golden Dome, and Redstone Arsenal, with 138,000 commuters daily1:05:07; asked about oversight of DOT's $140 billion in FY25 grant obligations1:05:30 and how FAA can use Alabama drone testing data to inform beyond-visual-line-of-sight rulemaking1:07:16; later raised CDL English-language enforcement1:36:04 and truck parking shortages1:37:14.

Rep. Adriano Espaillat (D-NY)1:10:22: Raised concerns about the Gateway project, Second Avenue Subway, and withheld transportation funds affecting over 100,000 union jobs1:10:55; asked about DOT's oversight of airline passenger data sharing with DHS without subpoenas1:13:02; pressed Harrison on a proposed rule restricting housing assistance for mixed-immigration-status families1:14:02.

Key moments

Behm testified DOT OIG returned $25 for every dollar appropriated to the office in FY250:12:25.

Harrison reported HUD OIG produced $227 million in questioned costs, $43 million in funds put to better use, and nearly $80 million in restitution in FY25, with 90 individuals charged and 85 convictions0:17:440:18:44.

Clyburn noted DOT has lost over 4,000 employees under the deferred resignation program and pressed Behm on whether OIG has assessed the impact; Behm said a more "global audit" is planned but gave no current results0:26:310:27:26.

Rutherford highlighted that HUD's expired computer-matching agreement with the "Do Not Pay" system contributed to $212 million in improper payments before being reconstituted0:33:250:35:36.

Torres cited a January 2026 court finding that the administration "freely admit[ted]" grant terminations were based on whether an awardee's state voted for Trump in 2024, and noted a $900 million transportation and $1.3 billion disaster relief funding dispute with California, Colorado, Illinois, and Minnesota1:11:151:12:44; Harrison committed to continuing disaster recovery investigations while Behm declined to commit to probing "unlawful" cuts, saying he would not presume unlawfulness0:52:370:52:52.

Harrison said the two largest HUD rental assistance programs are undergoing improper-payment estimates for the first time, with results expected later this year that "will get your attention"1:09:53.

Womack noted FAA's $17.5 billion in ATC modernization funding this year dwarfs the historical $4.2 billion annual maximum, while NextGen consumed $15 billion over 20 years without meeting stated goals0:22:100:22:56.

Watson Coleman pressed Harrison repeatedly on why HUD OIG cannot yet assess real-time performance impacts of staffing cuts, telling him "we should know what's happening in real time" rather than waiting months1:27:55.

Behm disclosed DOT OIG has recently launched audits on FMC's CDL knowledge/skills testing oversight1:24:56 and truck parking shortages, newly added to the 24-month audit plan1:37:56.

Harrison said as many as 3,700 public housing authorities exist nationwide with inconsistent counts, calling the funding environment "completely nontransparent" once money reaches grantees1:29:581:30:43.

Metadata

CommitteeHouse Appropriations Subcommittee on Departments of Transportation, and Housing and Urban Development, and Related Agencies
Chamber / CongressHouse · 119th Congress
Date2026-03-05
TypeHearing
Witnesses
Mr. Mitch Behm — Deputy Inspector General, Department of Transportation
Mr. Brian Harrison — Acting Inspector General, Department of Housing and Urban Development
Videoyoutube
Transcript220 caption blocks · 14,124 words · 1:40:16 runtime
EventCongress.gov 118998