News Release
Rep. Stier Responds to Allegations of Fraud Within the State Housing Stabilization Program
St. Paul, MN — Representative Terry Stier (R-Belle Plaine) issued the following statement in response to reports that federal authorities raided multiple locations across Minnesota this week as part of an investigation into alleged fraud in the state’s Housing Stabilization Services (HSS) program:
“The HSS program was created to help some of Minnesota’s most vulnerable residents keep their heads above water. But this week’s FBI raids reveal deeply troubling allegations that this program was exploited for personal gain. While the investigation is ongoing, the information that has come to light so far is alarming. Taxpayer money meant to help people in need may have been misused on a massive scale.”
According to court documents, investigators believe providers may have fraudulently billed the state for services that were never delivered, racking up millions of dollars in claims over the last several years. Annual program spending exploded from an estimated $2.6?million in 2020 to over $104?million in 2024, with more than $302?million in total payouts through early 2025.
“At what point do we see accountability for programs that are hemorrhaging taxpayer dollars with little to no oversight? This session, we proposed a bill that would’ve created an independent Office of the Inspector General. That’s the type of legislation that’s necessary and would’ve been a meaningful step in restoring oversight and preventing this kind of abuse.”
Stier added:
“During the next legislative session, I am determined to deliver real accountability to the Minnesota taxpayer and send a message to would-be fraudsters: you will be prosecuted to the fullest extent of the law.”
Representative Stier emphasized his continued support for reforms that protect taxpayer dollars, enhance transparency, and ensure state programs are delivering on their promises.
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