Trump administration cuts off Virgin Islands housing authority from federal funding

The U.S. Department of Housing and Urban Development (HUD) announced on the 20th (local time) that it is immediately suspending federal funding to the U.S. Virgin Islands Housing Finance Authority (VIHFA), which faces allegations of embezzlement and mismanagement of hurricane relief funds.

This action follows HUD audits revealing long-standing financial mismanagement and the conviction of a former executive related to disaster recovery contracts.

HUD Secretary Scott Turner, serving on the White House Fraud Task Force and intensifying reviews of federal grant recipients, made the decision. Secretary Turner stated, 'We will not allow organizations tainted by corruption and crime to waste taxpayers' money.'