HUD be witch-hunting LeToya! Suspends funding to NOLA due to her fraud

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1. What the Letter Says

HUD is suspending Mayor Cantrell from participating in any federal procurement or non-procurement transactions.

This includes contracts, grants, or other financial dealings involving federal funds.

The suspension applies across the entire Executive Branch of the federal government, not just HUD.

The suspension is based on a Superseding Indictment in federal court.

She is charged with conspiracy, wire fraud, obstruction of justice, and false declarations before a grand jury.

HUD specifically calls out alleged misuse of her public office for personal activities with a co-defendant (Jeffrey Paul Vappie II).

HUD determined that her continued participation poses a serious and immediate risk to public interest.

Because she is Mayor and has authority over local entities that use federal funds (like the Housing Authority of New Orleans), her suspension has direct impact on those transactions.

2. Practical Effects on New Orleans

Mayor Cantrell personally cannot take part in federal contracting, grants, or any related transactions.

Any federal funding involving the City of New Orleans (housing, infrastructure, disaster recovery, etc.) that requires her authorization or signature could be disrupted or require rerouting through other officials.

The Housing Authority of New Orleans (HANO) and other city bodies that depend on HUD money are directly affected, since HUD is saying she has participated in or influenced those transactions.

Until the suspension is resolved, she is essentially barred from handling or influencing federal money for the city.

3. What Happens Next

Cantrell can contest the suspension, but she must file a written request within 30 days.

While she contests it, the suspension still remains in place.

HUD will make a final decision after reviewing submissions. If criminal proceedings continue, the suspension can stay in effect until resolved.

If it escalates, HUD could move from suspension to debarment, which is a longer-term ban.

4. Bottom Line for New Orleans

The Mayor has been cut off from participating in federal financial dealings.

Federal oversight agencies will likely route federal funds and approvals away from her, which could slow down or complicate programs that rely on HUD or other federal support.

This suspension signals a serious federal action: it reflects both the legal trouble she faces and the federal government’s concern about protecting funds and public trust.

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