In response to new media reports detailing fraud in the Medicaid and Minnesota Housing Stabilization Services (HSS) programs, and a federal search warrant being executed today, Senator Michael Kreun (R-Blaine) issued the following statement:

“This week, many organizations have come under scrutiny for abusing a new housing program that federal authorities describe as ‘extremely vulnerable to fraud.’ We must do more across every agency and department to prevent fraud before it starts. Accountability starts at the top and these headlines will keep coming until Governor Walz ends his opposition to the bipartisan proposal for an independent Office of Inspector General.”

Alpha News reported that a large-scale search warrant was executed in connection with alleged fraud in the HSS program today. Separately, KARE 11 uncovered additional fraud concerns involving multiple organizations under the same HSS program, according to their reporting that aired yesterday. They documented HSS program fraud concerns in May reporting as well. In February, the Star Tribune highlighted concerns for poor performance and potential fraud in the HSS program.

Senator Kreun is the co-author of SF 856, bipartisan legislation to create an independent Office of Inspector General tasked with identifying and preventing fraud, waste, and abuse in state programs. The bill passed the Senate with strong bipartisan support, 60-7 and remains eligible to continue through the legislative process when the session resumes in February 2026.