January 2025

News from DHS archive

Commissioner Harpstead to depart DHS on Feb. 3

After five and a half years leading DHS, Commissioner Jodi Harpstead is departing from the agency.  Governor Tim Walz announced her resignation on Jan. 13. Her last day at the agency will be Feb. 3. “I want to extend my deepest thanks to Commissioner Harpstead for answering the call of public service five and a half years ago,” said Governor Walz. “I am proud of her work running the most complex and wide-ranging agency in state government. I am especially proud of how Commissioner Harpstead supported the enterprise-wide work to separate DHS into three separate agencies, which will make each of them more effective, more accountable, and easier to manage.” Since her appointment in August 2019, Harpstead has overseen significant internal evolution and operational stability of the department. Key among her accomplishments was supporting the enterprise-wide work to separate DHS into three distinct agencies, including the Department of Children, Youth, and Families as of July 1, 2024, and Direct Care and Treatment which will become independent on July 1, 2025. Under her leadership, the State of Minnesota’s 2024 Medicaid renewals process achieved the goal of no disparities within the Black and overall American Indian communities for the first time, and an 80% auto-renewal rate, earning Minnesota the rank of 8th in the nation. "I thank Governor Walz and Lieutenant Governor Flanagan for the honor and privilege of serving the people of Minnesota over two terms in their Administration,” said Harpstead. “I have been so proud to be the Commissioner of the caring, competent, and high-capacity Department of Human Services. I’m pleased that we were able to balance new, stronger process controls with greater responsiveness to community partners, worked with the DHS grants and contracts team to imagine a re-design of the agency’s thousands of grants, and built an unparalleled team of strong senior leaders.”

Governor Walz proposes curbing state spending to balance budget

Governor Tim Walz and Lt. Governor Peggy Flanagan presented their 2025 biennial budget on Jan. 16. The budget includes the first sales tax cut in state history. It also combats fraud and sets Minnesota up for success for years to come by curbing spending growth in the programs that drive the structural deficit.

“This budget is responsible, measured, and honest, and it starts with one goal: fiscal responsibility,” said Governor Walz. “Our plan sets Minnesota up for success in the future by addressing long-term budget challenges and protecting the investments we made to improve lives, including universal meals, paid family and medical leave, and tax cuts for seniors and middle-class families.”

If passed, the budget would leave $2.1 billion on the bottom line in FY 26-27, and $355 million in FY 28-29. 

Key among proposals related to human services are:

• An anti-fraud package that turns the dial toward tighter controls and greater oversight by strengthening enforcement authority and creating tougher penalties.
• Limiting year-over-year growth rates in Medicaid waivers without limiting eligibility for services, saving the state more than 1.3 billion dollars.

For more about the Governor's budget proposal, see the:

• Governor's Office news release
• Minnesota Management and Budget website

In social media: Behavioral health council seeks new members

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Report looks at ways Medicaid can improve health equity for American Indian communities

In the news

Minnesota extends continuous Medicaid coverage for children under 6: Minnesota is taking a significant step toward improving health outcomes and reducing disparities for its youngest residents. Starting Jan. 1, eligible children under the age of 6 have uninterrupted access to Medicaid coverage through the state’s Medical Assistance program. Learn more in a Minnesota Spokesman Recorder article.

Housing resources key to stability for many in recovery: Secure, stable housing is more than just a roof over one’s head — it is the foundation upon which health, safety, and long-term success are built. Without access to stable housing, individuals struggling with substance use disorders face additional barriers to healing, reintegrating and thriving in their communities. DHS Assistant Commissioner Teresa Steinmetz shared housing resources in a Phoenix Spirit article.

How does Minnesota combat Medicaid fraud, and what could change? From launching a statewide independent Office of Inspector General to boosting accountability for service providers, beefing up the battle against waste, fraud and abuse of state tax dollars - especially in Medicaid - is a priority for leaders on both sides of the political aisle. As leaders debate the best way to bolster oversight and fraud prevention, the Minnesota Star Tribune reviewed the state’s existing system to fight Medicaid abuse and the changes that could be coming.