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The Great Government Heist: $1.9B Vanishes at HUD, $312M Goes to Fake Kid Entrepreneurs

Posted on March 10, 2025 by Dennis Robbins

DOGE Uncovers Massive Fraud Scheme in Government Spending

On March 10, 2025, PJ Media published a report detailing explosive findings from the Department of Government Efficiency (DOGE), a recently established entity tasked with rooting out waste and fraud in federal spending. Authored by Matt Margolis, the article highlights what appears to be a staggering display of incompetence—or potentially worse—within the Biden administration, spotlighting nearly $2 billion in “misplaced” funds at the Department of Housing and Urban Development (HUD) and a jaw-dropping fraud scheme involving the Small Business Administration (SBA). Here’s the latest on this unfolding story as of March 10, 2025, based on available information and ongoing scrutiny.

PJ Media: DOGE Makes Another Bombshell Discovery

The Department of Government Efficiency (DOGE) just dropped a bombshell that exposes the mind-boggling incompetence of Biden’s administration. It has uncovered nearly $2 billion in “misplaced” funds at HUD, but that’s just the appetizer in this feast of government waste.

Here’s the shocking truth: During 2020-2021, the Small Business Administration handed out 5,593 loans totaling $312 million to “business owners” who were 11 years old or younger. That’s right — while our kids were stuck in Zoom school, we’re supposed to believe that a bunch of their classmates were apparently running multimillion-dollar enterprises. Even better, these pint-sized entrepreneurs all used Social Security numbers that didn’t match their names.

The Initial Revelation

DOGE’s investigation has brought to light a series of eyebrow-raising financial irregularities, with the HUD’s $1.9 billion in unaccounted funds serving as a stark example of bureaucratic mismanagement. However, the real bombshell lies in the SBA’s actions during the 2020-2021 period, a time when COVID-19 relief funds were being distributed at an unprecedented scale. According to the PJ Media report, the SBA issued 5,593 loans totaling $312 million to supposed “business owners” aged 11 or younger. These loans, ostensibly meant to support struggling businesses during the pandemic, were granted to applicants whose Social Security numbers (SSNs) did not match their names—a red flag that suggests either gross negligence or deliberate fraud.

The absurdity of the situation is hard to overstate: while children were attending virtual classes, some apparently secured multimillion-dollar loans under mismatched identities. Posts on X have echoed this sentiment, with users citing the same $312 million figure and pointing to SBA investigations already underway, lending credence to the claim that this is not mere speculation but a documented issue backed by data.

Digging Deeper: What We Know So Far

The $1.9 billion “misplaced” by HUD remains a murky figure. Neither the PJ Media article nor immediate follow-ups specify whether this amount reflects untracked disbursements, accounting errors, or funds siphoned off illicitly. Given HUD’s role in housing and community development, this could involve anything from mismanaged grants to payments for nonexistent projects. DOGE’s ability to unearth this in a short time suggests access to internal audits or whistleblower tips, though no official HUD response has been cited as of this update.

The SBA loan scandal, however, offers more concrete details. The 5,593 loans to minors align with broader concerns about COVID-era relief programs, such as the Paycheck Protection Program (PPP), which were plagued by fraud. Reports from outlets like Fox News Digital, referenced in X posts, confirm that the SBA is investigating these discrepancies, noting that the mismatched SSNs point to systemic failures in verification processes. The figure of $312 million matches across sources, reinforcing its reliability, though questions linger about how many of these loans were repaid or flagged earlier.

Emerging Questions and Leads

This story raises several critical threads for further investigation:
HUD’s $1.9 Billion: Where did this money go? Was it lost to fraud, incompetence, or both? Without a breakdown—say, between housing subsidies, administrative costs, or grants—the scale of the problem remains unclear.
SBA Oversight: How did the SBA approve loans to children under 11? Were these applications rubber-stamped by overworked staff, or does this indicate a deeper scheme involving fake identities? The mismatch in SSNs suggests possible identity theft or exploitation of minors’ data.
DOGE’s Methodology: How is DOGE uncovering these issues so rapidly? The agency, reportedly spearheaded by figures like Elon Musk, has moved at a breakneck pace since its inception. Are they leveraging advanced data analytics, insider leaks, or public tips?
Political Fallout: PJ Media frames this as a Biden administration failure, but the loans occurred during 2020-2021, a period spanning both Trump and Biden tenures. Could this reflect broader systemic issues predating Biden’s term?

Current Sentiment and Next Steps

Public reaction, as seen on X, ranges from outrage to calls for accountability, with some users tying the findings to DOGE’s broader mission of exposing government waste. The $312 million figure has gone viral, often paired with incredulity over “child entrepreneurs” and demands for prosecutions. Meanwhile, the HUD revelation has garnered less specific chatter, possibly due to its vagueness.

As of 10:25 AM MST on March 10, 2025, no official statements from HUD or the SBA have surfaced in response to DOGE’s claims, though the SBA’s ongoing probe into the loans suggests internal acknowledgment of the issue. Investigative outlets and DOGE itself may release more data soon, potentially clarifying the $1.9 billion HUD loss or detailing additional fraud cases. For now, this story is a live wire—shocking in its implications, but still unfolding in its full scope.

Conclusion

DOGE’s findings paint a damning picture of government inefficiency, with the SBA’s $312 million in dubious loans to minors standing out as a verifiable scandal, backed by consistent reporting and SBA scrutiny. The HUD’s $1.9 billion remains a tantalizing lead, begging for transparency. As this investigation progresses, expect more revelations—and likely more political heat—as DOGE continues its mission to dismantle what it calls a “feast of government waste.” Stay tuned for updates as the paper trail deepens.

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Somewhere in the world, there is a defeat for everyone. Some are destroyed by defeat, and some made small and mean by victory. Greatness lives in one who triumphs equally over defeat and victory.

~John Steinbeck

Email: dennis@novus2.com

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