Minnesota ends housing stabilization Medicaid program

📌 Key Facts

Minnesota's Housing Stabilization Services (a Medicaid program) is ending on Halloween (Oct. 31, 2025), according to FOX 9.
The Centers for Medicare & Medicaid Services (CMS) approved the termination of the program.
The shutdown comes amid allegations of fraud and ongoing investigations, and follows calls from legislators and the state auditor for stronger program controls.
The Minnesota Department of Human Services (DHS) says it is coordinating with counties, tribes and managed care organizations to redirect and connect impacted participants to other services.
Temporary Human Services Commissioner Shireen Gandhi provided an on‑record statement about the termination and the state's efforts to connect participants to alternative services.

Users on X frequently highlight the program's explosive cost growth from an initial $2.5 million annual budget to over $100 million, with claims that most funds were lost to fraud, emphasizing systemic oversight failures not detailed in mainstream reports.
Political criticism on X often targets Governor Tim Walz and the DHS for enabling fraud through lax controls, portraying it as part of a pattern in Minnesota's government programs, which mainstream coverage largely avoids.
X discussions express concerns about the human impact, warning that terminating the program could lead to increased homelessness among people with disabilities, and question the adequacy of alternative services mentioned by officials.
Posts on X connect this fraud to other Minnesota scandals like Feeding Our Future and autism services fraud, suggesting a broader culture of exploitation in state-funded programs that mainstream articles do not link together.
X users share details on specific cases, such as guilty pleas from individuals like Anwar Adow who used fake companies to defraud millions, calling for more prosecutions and highlighting methods like billing for unprovided services absent from general mainstream summaries.

Based on 2 sources

FOX 9 Minneapolis-St. Paul by Kilat.Fitzgerald@fox.com (Kilat Fitzgerald) October 31, 2025

New information:

Official on-record quote from Temporary Human Services Commissioner Shireen Gandhi on the termination and efforts to connect participants to other services.
DHS says it is coordinating not only with counties and tribes but also with managed care organizations to redirect impacted participants.
FOX 9 reiterates CMS approval for the termination and situates the decision alongside ongoing fraud investigations and a legislative-auditor push for stronger controls.

Twin Cities by Alex Derosier October 31, 2025