The U.S. attorney in Minnesota on Thursday will “deliver statements regarding housing stabilization fraud charges,” his office said.
Acting U.S. Attorney Joseph Thompson will speak at 11 a.m.
How to watch the U.S. attorney’s statements on housing stabilization fraud charges
- What: U.S. Attorney’s Office delivers statements regarding housing stabilization fraud charges
- Date: Sept. 18, 2025
- Time: 11 a.m.
- Location: United States Courthouse – Minneapolis, Minnesota
- Online stream: Live on CBS News Minnesota in the player above and on your mobile or streaming device.
Note: Streaming plans are subject to change.
Housing Stabilization Services, a Medicaid program under the umbrella of the Minnesota Department of Human Services, is accused of being the target of widespread fraud.
Federal agents in a search warrant outlined a scheme to steal taxpayer money by filing bogus claims that companies stated providers worked with clients when they actually received little or no services.
When the program started in 2020, the estimate was that it would cost taxpayers about $2.5 million a year. But by 2021, costs reached $21 million, and last year they ballooned to $104 million.
Eric Grumdahl, the assistant commissioner for homelessness and housing supports for DHS, left the agency on Tuesday. His departure came on the eve of a Minnesota House Fraud Prevention and State Agency Oversight Committee meeting focused on HSS.
The reason for Grumdahl’s exit is unclear, as is the subject of Thursday’s statements from Thompson.
DHS is working to terminate the housing program altogether because it “does not have the necessary controls to stop bad actors.”
WCCO Staff
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