RELEASE: Rep. Bobbie Harder Responds to Housing Stabilization Services Fraud Investigation

News Release 

Rep. Bobbie Harder Responds to Housing Stabilization Services Fraud Investigation

St. Paul, MN – In response to recent federal raids and ongoing investigations into alleged widespread fraud within Minnesota’s Housing Stabilization Services program, Representative Bobbie Harder (R–Henderson Twp) issued the following statement:

“Recent instances of alleged fraud in state-funded housing programs highlight the need to reassess how taxpayer resources are allocated. Ensuring funding for essential services like long-term care, emergency response, and rural infrastructure should remain a top priority.”

She continued:

“What's most troubling is that those who genuinely need assistance are being overlooked. When fraud infiltrates our support systems, it's Minnesota's most vulnerable who pay the price while bad actors exploit the system for personal gain."

Originally launched in 2020, the Housing Stabilization Services program was intended to help vulnerable Minnesotans – particularly those who are homeless, at risk of institutionalization, or transitioning out of treatment facilities – find and maintain stable housing. However, recent reports suggest that providers exploited this broad eligibility framework by billing for services never delivered, diverting resources away from the people the program was meant to support. The result has been more than $300 million in spending and a growing federal investigation into alleged widespread abuse and fraud.