Minnesota pausing adult day centers licensing to increase oversight

(FOX 9) - The Minnesota Department of Human Services (DHS) is pausing licenses for adult day care settings to enhance oversight and combat fraud.

DHS pauses adult day care licensing

The backstory:

Minnesota DHS announced a two-year licensing pause for adult day care centers, starting Feb. 1, 2026, and ending Jan. 31, 2028. This move is part of a broader effort to tighten oversight and prevent fraud in the system.

The pause will allow resources to focus on monitoring existing providers, ensuring compliance with state and federal regulations. During this period, new applications for adult day center licenses will not be accepted, and pending applications will be canceled.

"The current licensed capacity of adult day providers goes well beyond the actual need for these services," said temporary Human Services Commissioner Shireen Gandhi in a statement Tuesday. "This action is necessary to safeguard the integrity of these programs for the people who need them."

Licensed adult day centers offer services like health support, activities and meals. The services help people stay connected, support their daily needs, and give caregivers a short break, according to DHS.

DHS pauses other licenses to combat fraud

2-year ban on new disability services licensing

Minnesota is pausing on giving licenses for disability services to increase oversight. FOX 9's Soyoung Kim has more.

Dig deeper:

This latest license pause comes weeks after DHS paused licensing for disability services.

According to a letter issued by the department’s temporary commissioner, the number of provider licenses approved has been significantly outpacing demand for services, which has prompted a need for further review.

The department’s data shows that over the past five years, the average number of participants, those who need disability services, has increased by roughly 25%.

Over the same period, active provider licenses grew by roughly 55%. And new license applications grew by 283%.

The moratorium goes into effect on Jan. 1, 2026 until Dec. 31, 2027.