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DOJ: Minnesota housing-stabilization program emptied by fraud and shut down
Summary
DOJ said a state-run housing-stabilization services program intended to help people experiencing homelessness was drained by fraud, growing from an expected $2.5 million-per-year program to alleged losses of about $104 million by 2024, and that the program was shut down in 2025.
Assistant Attorney General Colin McDonald said one Minnesota-run housing-stabilization services program meant to help people experiencing homelessness was effectively drained by fraud and shut down in 2025 because "there's no money left." He said the program, estimated to cost about $2,500,000 per year in 2020, had experienced losses that prosecutors allege totaled about $104,000,000 by 2024.
"It was estimated in 2020 that it would cost only about 2,500,000 a year to fund this program, but it ended up costing almost 50 times that much, over a $104,000,000 by 2024 due to fraud," McDonald said. He said the shutdown left services unavailable to vulnerable homeless populations and framed the shutdown as an example of how fraud can eliminate vital programs.
