Minnesota Names New DHS Commissioner as State Deals with Fraud Fallout

Shireen Gandhi takes over as permanent commissioner as state works to recover from massive fraud cases.

Published on Mar. 2, 2026

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The state of Minnesota has named Shireen Gandhi as the permanent commissioner of the Department of Human Services (DHS) as the state attempts to emerge from the shadow of massive fraud cases that have plagued its social services programs. The federal government is withholding $259 million in Medicaid funding, and the state has 60 days to prove it has rooted out fraud. Gandhi says at least $300 million in fraud has been documented so far, with more potentially uncovered.

Why it matters

The fraud scandals in Minnesota's social services programs, including the Feeding Our Future case and issues with the state's autism program, have led to a major crackdown by state and federal authorities. The appointment of a new permanent DHS commissioner signals the state's efforts to regain control and restore trust in these critical programs.

The details

Shireen Gandhi was recently named the permanent commissioner of the Minnesota DHS after serving in an interim role. She says the state has documented at least $300 million in fraud so far, with the potential for more to be uncovered. The federal government is withholding $259 million in Medicaid funding, and the state has 60 days to prove it has rooted out fraud. In the past year, Minnesota has implemented changes to stop payments and freeze enrollments in more than a dozen programs. New anti-fraud measures include creating an independent inspector general office and increasing penalties and the statute of limitations for fraud.

  • In September 2022, the Feeding Our Future indictments were issued.
  • In his 2026 State of the Union address, President Trump singled out Minnesota for its fraud scandals.
  • Last week, Gov. Tim Walz announced additional anti-fraud measures.
  • Starting May 31, 2026, Medicaid-funded autism programs in Minnesota will require a license for the first time.

The players

Shireen Gandhi

The newly named permanent commissioner of the Minnesota Department of Human Services.

Tim Walz

The governor of Minnesota who announced new anti-fraud measures last week.

Jim Abeler

A Republican state senator from Anoka who said the crackdown on fraud is affecting legitimate programs and their clients.

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What they’re saying

“So there has been about $300 million that has been documented. I don't know what the number is, but every dollar counts and we are going after it.”

— Shireen Gandhi, Commissioner, Minnesota Department of Human Services (CBS News)

“We have been catching dolphins in the tuna net.”

— Jim Abeler, Republican State Senator, Anoka (CBS News)

What’s next

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The takeaway

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