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KARE 11 Investigates: Minnesota Moves to Shut Down Housing Stabilization Services Program Amid Widespread Fraud
MINNESOTA, AUG 1 – Minnesota DHS halted the Medicaid-funded program after suspending payments to 77 providers amid fraud investigations and plans to redesign the housing support benefit.
- The Minnesota Department of Human Services announced plans to terminate the Housing Stabilization Services program amid investigations of widespread fraud involving funding misuse, as stated by temporary Commissioner Shireen Gandhi.
- Payments to 77 providers were suspended based on credible allegations of wrongdoing related to the program, and insufficient controls allowed fraud, according to Gandhi.
- Governor Tim Walz expressed concern that ending the program could negatively impact those in need of housing support.
- Fraud has significantly impacted Minnesota's public programs, costing taxpayers billions, while federal investigations continue.
12 Articles
12 Articles
Minnesota to shut down housing program because 'too many fraudulent, unqualified bad actors have likely stolen money' AlphaNews.org
Share This StoryThe Minnesota Department of Human Services (DHS) announced Friday it plans to shut down a housing assistance program after investigations revealed “too many fraudulent, unqualified bad actors have likely stolen money from our state’s taxpayers.” Last month, federal authorities raided several organizations suspected of participating in a “massive scheme to defraud” Minnesota’s Housing Stabilization Services (HSS) program, a progra…
Local legislators react to Minnesota Department of Human Services’ Housing Stabilization Services termination announcement
ST PAUL, MN – The Minnesota Department of Human Services says they’re looking to terminate the state’s Housing Stabilization Services. The announcement comes amid allegations of ‘widespread fraud’ in the program. Minnesota legislators reacted to the announcement. “Friday afternoon’s surprise announcement from the Walz Administration is the right decision, but it’s too little, too late. Once again, state agencies failed to catch fraud in real tim…
State shuts down $107 million housing stabilization program, citing fraud
Gov. Tim Walz took questions from reporters after a ceremonial bill signing at Apple Jack Orchards in Delano, Minnesota, on July 28, 2025. He also announced his administration was withholding payment from 50 housing stability providers. The state announced Friday it's moving to shutter the program. (Photo by Michelle Griffith/Minnesota Reformer)Citing “credible allegations of fraud” and “exponential growth in spending,” the Department of Human S…
State shuts down $100+ million housing stabilization program, citing fraud
Citing “credible allegations of fraud” and “exponential growth in spending,” the Department of Human Services asked the federal government for assistance in terminating a state housing program, according to a letter signed by DHS Temporary Commissioner Shireen Gandhi and released…
MN to terminate housing assistance program amid federal fraud investigation
Minnesota’s Department of Human Services is moving to terminate a Medicaid-funded housing assistance program after federal law enforcement announced it was investigating a “massive” fraud scheme that likely lost the state millions. DHS on Friday said it sent a letter to the Centers for Medicare and Medicaid Services asking to end the Housing Stabilization Services program, describing the move as an “unprecedented step.” The agency said it intend…
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