In a decisive crackdown on fraud, the Minnesota Department of Human Services (DHS) is shuttering its Housing Stabilization Services (HSS) program. The agency, spearheaded by the DHS Office of Inspector General, initiated a request to the Centers for Medicare and Medicaid Services (CMS) to immediately terminate the HSS program due to rampant abuse by providers. "DHS is rooting out fraud wherever we find it. We cannot allow one more cent of taxpayer money going out the door to providers who claim to serve Minnesotans in need of stable housing while lining their pockets for personal gain," said DHS Temporary Commissioner Shireen Gandhi, in a move that highlights the department's commitment to fiscal accountability and ethical service delivery.
Integrity and efficiency are at the forefront of DHS's agenda as they plan to reimagine the HSS program. In an effort to rebuild trust and ensure the proper application of public funds, the agency is collaborating with multiple stakeholders, including the legislature, community partners, and CMS. The goal is to craft a program with stringent requirements for integrity and service quality, ensuring that bad actors are barred from participating, and Minnesotans in need receive the support they deserve. Eleven additional HSS providers saw their payments frozen as of July 31, joining the ranks of 77 providers now cut off due to credible allegations of fraud—an action in line with the agency's zero-tolerance policy on such transgressions.
James Clark, the DHS Inspector General, elucidated the need for drastic measures: "As our OIG data and investigations have revealed, too many fraudulent, unqualified bad actors have likely stolen money from our state’s taxpayers, and also cheated Minnesotans who need housing services." The cessation of the HSS program, according to Clark, is deeply regrettable for individuals requiring these services, but stands as the only viable solution in light of the current situation.
The transition away from the embattled program is undergirded by coordination with CMS to ensure all necessary procedures are followed, including communicating changes to both enrollees and service providers. While awaiting CMS's formal process to conclude, DHS vows to keep a vigilant eye on active HSS providers, using legislative tools to evaluate and address potential fraud. Gandhi further stressed the agency's relentless pursuit of fairness and justice in the administration of public programs: "Enough is enough."
For updates and further details, view the full DHS news release posted on August 1st, 2025, here.
