A sweeping federal investigation has been launched into the city of Minneapolis, alleging its housing policies illegally prioritize resources based on race and national origin. The Department of Housing and Urban Development (HUD) is demanding answers, signaling a potentially seismic shift in how the city allocates vital housing funds.
HUD Secretary Scott Turner described Minnesota as “ground zero for fraud and corruption,” fueled by what he calls a “cynical game of racial and ethnic politics.” He insists this directly contradicts core American values, emphasizing a commitment to equal treatment under the law for all citizens.
The investigation, formally initiated with a letter to Minneapolis Mayor Jacob Frey, centers on whether the city violated the Fair Housing Act and the Civil Rights Act. These landmark laws prohibit discrimination in housing based on a multitude of factors, including race, national origin, and disability.
Concerns stem from specific language within Minneapolis’s “2040” comprehensive plan and its Strategic and Racial Equity Action Plan. The 2040 plan explicitly aims to eliminate disparities between people of color and white residents, while the equity plan directs city departments to prioritize housing for specific racial and immigrant communities.
The city’s plan to establish “cultural districts” – areas with strong cultural and linguistic identities populated by people of color, Indigenous people, and immigrants – is also under scrutiny. HUD officials question whether these initiatives inadvertently create discriminatory practices in housing allocation.
This investigation arrives amidst a larger scandal involving alleged widespread fraud within Minnesota’s social services programs. Nearly 100 individuals, largely from the Somali community, have been charged, with federal prosecutors estimating the total fraud could exceed a staggering $9 billion.
HUD officials believe the alleged fraud and the housing policies are interconnected, suggesting a pattern of prioritizing racial considerations in the distribution of taxpayer dollars. The department is determined to ensure responsible stewardship of these funds.
Assistant Secretary for Fair Housing and Equal Opportunity Craig Trainor made it clear in his letter to Mayor Frey: prioritizing housing based on race “is not going to fly.” The department is prepared to take action if violations are confirmed.
The fallout from the alleged fraud has already impacted Minnesota politics, with Governor Tim Walz acknowledging oversight failures during his administration. The situation has also been marked by protests and clashes with federal law enforcement.
Recent findings by HUD investigators revealed potentially ineligible assistance totaling up to $84 million during the previous year, including nearly $500,000 in improper payments to deceased tenants. This discovery underscores the urgency of the ongoing investigation and the need for greater accountability.
HUD is currently investigating approximately $154 million in funding allocated to Minneapolis housing authorities, meticulously examining how these resources are being utilized and whether they are being distributed fairly and legally.
