Minnesota DHS Seeks End to Housing Program Over Fraud

The Minnesota Department of Human Services (DHS) has requested federal approval to terminate its Housing Stabilization Services (HSS) program after uncovering widespread provider fraud, with federal and state investigations ongoing. The $100 million annual program, aimed at helping vulnerable Minnesotans obtain stable housing, was found to be plagued by false billing and fraudulent activities, leading to FBI raids and DHS reviews. Temporary DHS Commissioner Shireen Gandhi cited insufficient safeguards against abuse, resulting in immediate payment suspensions to 77 providers. Governor Tim Walz has backed the decision, stressing the importance of protecting taxpayer funds and ensuring services reach those truly in need. DHS intends to collaborate with state legislators and partners to design a more secure housing benefit for the future. The move comes amid bipartisan calls for federal audits and increased oversight of Medicaid spending in Minnesota.