End of fraud-plagued housing program could leave those in need scrambling

The Minnesota Department of Human Services ended its Housing Stabilization Services (HSS) program on Friday due to rampant fraud uncovered during an FBI investigation. HSS had been crucial for many, including individuals like Travis Johnson, who relied on it for housing stability and support services. Authorities suspect that hundreds of fraudulent providers exploited the program, prompting the state to take drastic measures. Critics argue that the decision to cancel HSS punishes legitimate providers and those in need instead of addressing the fraud issue directly. Tammy Moreland, chairperson of the Minnesota Tribal Collaborative, emphasized the need for training and safeguards rather than a complete program shutdown.

DHS officials acknowledged the need for prompt action but promised to collaborate with lawmakers and community partners to redesign HSS with stronger integrity measures. The program, originally launched in 2020, had grown significantly, with more than 700 providers receiving over $100 million last year. As a result of this fraud, state officials are now auditing other high-risk Medicaid services to prevent similar issues in the future.