(The Center Square) – Gov. Tim Walz announced a leadership restructuring at the Minnesota Department of Human Services this week, framing the move as necessary to protect the state’s Medicaid program, while Republicans criticized it as an attempt to avoid scrutiny over fraud.
Walz said the changes are aimed at strengthening oversight and ensuring stability as federal uncertainty looms over Medicaid funding.
“While President Trump and Dr. Oz play politics with Minnesotans’ healthcare, we are focused on stability and results,” Walz said in a statement. “We’ve made significant progress to strengthen programs and root out fraud.”
Under the new structure, John Connolly will serve as temporary DHS commissioner. Shireen Gandhi, the former commissioner, was demoted to a deputy role overseeing Medicaid. DHS General Counsel Andrew Johnson will also step into a deputy commissioner position.
Walz said this leadership will “ensure stability” and reinforce accountability for the program, which serves more than 1 million Minnesotans.
Connolly said his focus will be maintaining continuity and safeguarding public funds.
“My priority is to continue transforming a human services system Minnesotans can trust, where program integrity and impact go hand in hand,” he said.
Gandhi said she accepted the shift back to deputy commissioner to continue the “aggressive and proactive work” of protecting funding to Medicaid.
Republicans, however, sharply criticized the move, noting it came just before the scheduled confirmation hearing for Gandhi.
House Speaker Lisa Demuth, R-Cold Spring, accused the administration of failing to address fraud.
“Recycling the same failed staff will not root out fraud – only wholesale change will,” Demuth said. “Fraud will continue until the Walz administration takes the problem seriously.”
The firestorm of Minnesota fraud first broke following the release of reports in late November which alleged that millions of taxpayer dollars had been fraudulently stolen from the Minnesota welfare system and then sent to the Somali-based terror group Al-Shabaab.
Independent and federal investigators now estimate the potential value of fraud schemes could range between $9 billion and $20 billion throughout the state’s taxpayer-funded programs.
House Floor Leader Harry Niska, R-Ramsey, called out Walz’ timing.
“For the second time in under a year, the day before a Walz employee is set to face tough questions over the DHS response to fraud, they’re removed from their position,” Niska said. “This is a pathetic attempt to dodge real accountability on fraud, and Minnesotans can see right through it. Keeping the same staff who have overseen the fraud explosion will only allow the fraud to keep growing unchecked.”
Gandhi was just nominated by Walz to become the permanent commissioner in February, after more than a year as the interim commissioner.
In a different Republican perspective, state Rep. Kristin Robbins, R-Maple Grove and chair of the House Fraud Prevention and State Agency Oversight Committee, said she sees this restructuring as an opportunity for real change.
“DHS is in need of real leadership that will stop the fraud, hold employees accountable for doing basic internal controls and reward, not retaliate against, whistleblowers,” Robbins said. “This is an important opportunity to change course.”
