Minnesota Department of Human Services Press Release | August 5, 2025

Minnesota – Minnesota’s Department of Human Services is taking swift and dramatic action to shut down a key housing program, and it could have serious consequences for rural Minnesotans, including those in Roseau and Lake of the Woods counties.

On Friday, July 31st, Minnesota DHS announced it is seeking federal approval to immediately terminate the Housing Stabilization Services program, which helps people on Medicaid find and keep stable housing. That includes people living with disabilities, mental illness, or those at risk of homelessness.

Temporary DHS Commissioner Shireen Gandhi said the program lacks sufficient guardrails to prevent fraud and that millions in taxpayer dollars may have been misused by providers who weren’t actually delivering care. So far, DHS has halted payments to 77 providers across the state due to credible allegations of fraud.

While the state says it plans to redesign and relaunch the benefit, this leaves many Minnesotans, particularly in smaller counties, in a tough spot. For residents in Roseau and Lake of the Woods Counties, where housing options and support services are already limited, the loss of this program could mean longer waitlists, less assistance, and increased housing instability for those who depend on these supports.

DHS says it’s notifying both providers and recipients, and will continue monitoring any services still operating during the shutdown process.

Local agencies are urging those impacted to reach out to their case managers or county human services offices to understand what options may still be available.