Interim UpdateDear Friends and Neighbors, I hope you’re enjoying Minnesota’s summer—whether that means a weekend at the cabin, time on the lake, or just taking advantage of our parks, trails, and golf courses. National Night Out was held across the state this week, and it was great to see communities gathering in support of law enforcement and neighborhood safety. Normally, things quiet down at the Capitol this time of year, but this summer has been anything but normal. From tragic losses to ongoing fraud investigations, there’s been no shortage of news. I wanted to provide a quick update on the major developments and on the work I’ve been doing to restore accountability in state government. To that end, here’s a quick interim update to bring you up to speed and share some of the things that have been happening in Minnesota politics. DHS Ends Housing Program After Rampant Fraud and A Renewed Push for my Office of Inspector General Bill In July, the Department of Human Services (DHS) announced that it would permanently shut down the Housing Stabilization Services program due to widespread fraud and ongoing federal criminal investigations. This program was established in 2020 to assist Minnesotans with disabilities and mental health challenges in finding and maintaining stable housing. It was initially projected to cost just $2.6 million per year. But in just four years, costs ballooned to more than $100 million, an astonishing increase that should have raised serious red flags at DHS. Another example: A single office building in St. Paul was home to 22 separate housing providers, many of whom are now under federal investigation. 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 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. Now, as a result of DHS’s failure to act sooner, the entire program is being dismantled, as it’s estimated that a significant number of the providers are fraudulent. This is exactly what happens when the government expands rapidly without accountability or internal controls. This is not a new problem and is one we have been sounding the alarm on for years. It is exactly why I authored legislation during the 2025 session to create an independent Office of Inspector General with law enforcement authority. 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. It would also help ensure that agencies follow oversight requirements set by the Legislature, the Office of the Legislative Auditor, and even their own internal policies. A different version of this bill, which accomplished the same core goals, passed the Senate with near-unanimous support. But despite that, House Democrats refused to even allow a vote on the bill on the House. With fraud losses now estimated to exceed $1 billion across multiple programs, this kind of independent oversight is long overdue. I’ll continue pushing for its passage in the House, and it will be a top priority heading into the 2026 session. House Fraud Committee As you may know, I serve as the Vice-Chair of the House Fraud Committee. We have continued to meet over the summer and expect that our next meeting will be an in-depth look at how and why DHS failed to stop the latest Housing Stabilization Fraud (until recently) and what can be done legislatively with DHS programs to make them more accountable. Our goal is not only to uncover the fraud, but to force the administration to put safeguards in place to make sure it stops. Standing Up for Local Decision-Making  I was honored to receive the League of Minnesota Cities’ 2025 Legislator of Distinction Award this week in recognition of my efforts to defend local control and support the important work of our city governments throughout the legislative session. One of the biggest issues facing cities right now is a growing push to take zoning authority away from local governments and hand it over to the state. These proposals would allow the state government to force higher-density, lower-cost housing developments into communities, regardless of the input or concerns of local residents. As a former mayor and city council member, I’ve seen firsthand how important it is for land use decisions to be made at the local level. Local officials are accountable to their neighbors and have a much better understanding of their community’s needs than lawmakers or agencies in St. Paul. 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. I’m grateful to the League of Minnesota Cities for this recognition and will continue working to protect local voices from one-size-fits-all mandates. Thank you for the opportunity to serve. I’ll keep you updated as we continue to prepare for the next session and work to restore trust, accountability, and transparency in state government. Sincerely, Rep. Patti Anderson |