Overview

• Federal agents executed search warrants on July 16 at eight locations tied to five housing stabilization providers across the Twin Cities.
• FBI affidavits allege the companies billed Medicaid for millions of dollars in services that clients reported never received.
• The raids were coordinated by the FBI alongside the Minnesota Department of Human Services, Bureau of Criminal Apprehension and Attorney General’s Office, and no charges have been filed yet.
• Since the program’s 2020 launch, annual payouts climbed from an estimated $2.6 million to over $104 million in 2024, with more than $61 million disbursed in the first half of 2025.
• State lawmakers this year imposed pre-enrollment risk assessments, stricter service documentation requirements and a 100-hour annual cap on transition services to reduce fraud.