ST. PAUL — As federal investigations continue into widespread allegations of fraud within the state’s Department of Human Services, the agency is cracking down on issuing new licenses for group homes and home health agencies.
The two-year pause that goes into effect Jan. 1, 2026, comes amid “unprecedented growth in new applications from home and community-based human services providers," according to a release.
Licensed home and community-based services provide person-centered support to older adults and people with disabilities and chronic illnesses, allowing recipients to receive services in their own homes or communities, the release stated.
“The unprecedented increase in provider applications over the past five years far outpaces the increase in people receiving services,” stated temporary Human Services Commissioner Shireen Gandhi.
“This has stretched our resources and created frustrating backlogs for people applying for licenses. Pausing will allow us to provide necessary oversight of existing providers and better protect the health and safety of people receiving services.”
DHS asserts the pause is necessary while it improves oversight of existing license providers.
The state Legislature gave DHS the authority to pause licensing temporarily beginning last summer.
The Association of Residential Resources in Minnesota, or ARRM, is criticizing the move it says was finalized before consulting disability service providers.
"This administration continues to govern from behind closed doors,” stated Sue Schettle, the ARRM CEO, in a news release. “Decisions that reshape the disability services landscape are being made in secrecy, and providers — the organizations delivering critical care every day — are treated as an afterthought. This is not partnership. This is disrespect.”
The pause is one of many changes as the state confronts what prosecutors are calling the largest public services scandal in history, with $218 million in fraud uncovered to date.
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