On the eve of a high-stakes confirmation hearing, Gov. Tim Walz quietly pulled a major personnel switch at Minnesota's Department of Human Services, or DHS. On Monday, he named John Connolly as temporary commissioner and reassigned Shireen Gandhi back to a deputy role overseeing Medicaid. The move lands as the agency faces intense scrutiny over billing and provider fraud tied to Medicaid programs, and just one day before Gandhi was set to appear before the Minnesota Senate for her confirmation hearing.
What's changing at DHS
Walz elevated John Connolly, the state's Medicaid director, to serve as temporary commissioner and asked DHS general counsel Andrew Johnson to take on an additional deputy commissioner portfolio while keeping his legal duties. Gandhi, who had been selected earlier this year to lead the agency permanently, will return to a deputy position focused on Medicaid and program integrity, according to KSTP.
Background
Gandhi was formally appointed commissioner on Feb. 23 after a stint as the department's interim leader. She joined DHS in 2017 and previously held compliance and program integrity posts. Her permanent appointment was pitched as a way to bolster oversight in the wake of audits and fraud allegations, according to the Star Tribune.
Why it matters
Minnesota's DHS administers Medicaid programs that account for billions in public spending, and the agency has been under heavy pressure from federal officials. The Centers for Medicare and Medicaid Services warned the state that it could withhold more than $2 billion annually if Minnesota failed to meet corrective demands. In response, DHS launched a sweeping revalidation of high-risk providers and increased prepayment reviews to tighten controls, according to the Minnesota Department of Human Services. Federal agents also executed dozens of search warrants at day care and autism service sites in late April as part of an expanding fraud probe, as reported by CBS Minnesota.
Reactions and next steps
Walz cast the shakeup as an effort to tighten control rather than a sign of chaos, saying the administration was "adding leadership, improving oversight, and ensuring these programs are managed with the discipline and accountability Minnesotans expect." Connolly said he accepted the temporary role "with continuity of operations at the forefront" and pledged to safeguard public dollars. Gandhi told staff she accepted Connolly's request to return to a deputy commissioner role, according to KSTP.
Political fallout
Connolly will still need confirmation from the Minnesota Senate before he can hold the commissioner post permanently. Under state law, commissioners are appointed by the governor but serve subject to Senate consent. Some advocates and commentators have urged lawmakers to prioritize stable leadership to avoid disruptions in crucial services, even as others press for tougher accountability. A commentary this week argued that continuity at DHS is especially critical for vulnerable Minnesotans who rely on its programs, according to the Star Tribune.
For now, the reshuffle resets the org chart at Minnesota's largest state agency while lawmakers and federal investigators continue probing program integrity. The next several days, including any Senate action on leadership, will reveal whether this new lineup eases the pressure on DHS or only fuels calls for deeper change.
