A day after launching his re-election bid for a third term, Minnesota Governor Tim Walz faced criticism over his administration’s handling of a housing program plagued by fraud.

The Housing Stabilization Services program, funded by Medicaid and designed to help vulnerable populations secure housing, grew from $2.6 million in 2017 to $107 million by 2024 before being shut down amid “credible allegations of fraud.”

Shireen Gandhi, interim commissioner of the Department of Human Services (DHS), recently requested federal approval to terminate the program. DHS Inspector General James Clark told lawmakers that payments to 115 providers have been suspended, and the agency is adopting a more aggressive anti-fraud stance.