Walz removes top Minnesota official on eve of ‘gauntlet’ hearing over fraud scandal
Minnesota Gov. Tim Walz removed and reportedly demoted the head of the state agency that oversees disbursement of social services program funding like Medicaid and housing assistance, after a months-long...
By Fox News · Fox News
Minnesota Gov. Tim Walz removed and reportedly demoted the head of the state agency that oversees disbursement of social services program funding like Medicaid and housing assistance, after a months-long firestorm over hundreds of millions lost to fraud. The Minnesota Department of Human Services (MNDHS) was cast into the national spotlight after citizen journalists uncovered a massive, wide-ranging alleged fraud network connected to the Somali community in Minneapolis, where businesses were taking state funds without evidence of actual childcare or other services being provided. MNDHS Commissioner Shireen Gandhi was booted from her leadership role on Monday, one day before she was set to face an official confirmation hearing local reports described as a "gauntlet," given the towering fraud scandal gripping the agency. Gandhi had been an acting commissioner since early 2025, until Walz tapped her as the official head of MNDHS in February. ‘SCHEMES STACKED UPON SCHEMES’: $1B HUMAN-SERVICES FRAUD FUELS SCRUTINY OF MINNESOTA’S SOMALI COMMUNITY After being returned to a deputy commissioner role within MNDHS, Gandhi oversaw an agency that drew immediate federal attention after news of the wide-ranging fraud scandal affecting her and other Walz administration departments broke. Under Gandhi's leadership, MNDHS shut down its Housing Stabilization Services (HSS) program in October as ballooning year-over-year payouts led to findings of fraud, with providers using names of eligible beneficiaries to obtain funds through inflated or fake reimbursement claims, according to a Minnesota House probe . Originally estimated to cost under $3 million, HSS disbursements totaled more than $100 million in 2024, which federal officials considered the "vast majority" to be fraudulent. A state auditor also alleged that MNDHS had fabricated or backdated documents going back to before Gandhi was commissioner that exacerbated the daycare scandals. In an interview with Minneapolis’ NBC affilia…