East Twin Cities

Minnesota State Representative Patti Anderson (R-Forest Lake) provided an interim update to constituents this week, outlining developments at the Capitol and ongoing state investigations.

Anderson highlighted the recent permanent closure of the Housing Stabilization Services program by the Department of Human Services (DHS). The program, launched in 2020 to help Minnesotans with disabilities and mental health needs secure housing, saw costs rise from an expected $2.6 million annually to over $100 million within four years. According to Anderson, “When a program grows this fast and flies this far off course, it’s clear that proper oversight was missing from the start. However, no one at DHS has been held accountable.”

The decision to shut down the program followed revelations of widespread fraud and federal criminal investigations. “The fraud in this program was originally revealed by several local TV Investigative reporters and later by the US Attorney’s office. If it wasn’t for these reporters, I suspect DHS would still be handing out millions to fraudsters,” Anderson said.

She added that many providers associated with the program are under investigation and described the situation as an example of government expansion without sufficient controls. Anderson noted that estimated losses due to fraud now exceed $1 billion across multiple programs.

In response, Anderson authored legislation during the 2025 session seeking to establish an independent Office of Inspector General with law enforcement authority outside of DHS and other agencies. She explained: “This office would operate outside of DHS and other state agencies, with the power to investigate fraud in real time, audit compliance with internal controls, and refer cases for criminal prosecution when needed.” While a similar bill passed almost unanimously in the Senate, she stated that House Democrats did not allow a vote on her proposal in the House.

Anderson serves as Vice-Chair of the House Fraud Committee, which continues work over the summer examining failures related to oversight at DHS. She said their next meeting will review how DHS handled housing stabilization services fraud and consider legislative options for increased accountability: “Our goal is not only to uncover the fraud, but to force the administration to put safeguards in place to make sure it stops.”

Additionally, Anderson announced receiving the League of Minnesota Cities’ 2025 Legislator of Distinction Award for her advocacy supporting city governments during this year’s legislative session. She voiced concerns about proposals shifting zoning authority from local governments to state control: “Stripping away that authority risks serious consequences, such as reduced property values, overloaded infrastructure, and increased public safety concerns. Communities should have the final say in how they grow.”

Anderson concluded by encouraging constituents to reach out with questions or concerns as she prepares for upcoming legislative sessions focused on restoring trust and accountability in state government.