[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6373163,"mediaKeyId","2146275-b13ba855a5027e0f3f4841010ff40049","parentId",2146275,"title","New Department of Children, Youth and Families begins operations with $3.7 billion budget; childcare licensing and in‑home daycare concerns raised","audioSeconds",1119,"startMs",5436000,"endMs",6555000,"viewUrl","/Search/View?dp=1&key=2146275-b13ba855a5027e0f3f4841010ff40049&start=5436&end=6555","thumbnailUrl","https://assets.pipeline.soar.com/2146275-b13ba855a5027e0f3f4841010ff40049/thumbnail_5436000.jpg","articleUrl","/articles/6373163/Minnesota/New-Department-of-Children-Youth-and-Families-begins-operations-with-37-billion-budget-childcare-licensing-and-inhome-daycare-concerns-raised","mediaUrl","https://secure.pipeline.soar.com/6373163-fda4547796a635c2bfbd7f8b6a1ea845/orig.mp4?Expires=1771064935&Signature=PkyKMfEcOOL4uB7SQCwLeB2w7kcxlSvvYHZ2K9gNz9Qj4bm~NxfVDvDsTv1WNnfMEOe4XC0R0~r1w7thgg5XI6Gz2j4hdjL0Ksy1A6Pci~ahSBRObABvqo9zNO~Pl-4S-0uzrSGBggXl1MOR-RuZlnoAJZVZj0duZd6RASImlsDdwg5m4DM92c~-UcnRsEAvm-qReFMfNNnpzy1R0MllbmO8NiZfVGhHfr6i7sp8acH3CIg06UmGK6pbcrsnxEGFhhI3t352gYje7yb-zBsh2Y~3ScxLrbdU-vkbEZoTta8AofYElb3UPlhShVa34XuhNaPlRNcZGhXeKVQabespvg__&Key-Pair-Id=KUT5TJCACFTXG","author","Minnesota Senate Media Services","date","2025-01-23T00:00:00Z","article","The Department of Children, Youth and Families, launched July 1 after 2023 legislation reorganized several programs, is operating in transition and expects roughly $3.7 billion in annual expenditures when fully transitioned, department leaders told the Health and Human Services Finance and Policy Committee on Jan. 23.

Jennifer Summerfield, government relations director for DCYF, said the new agency’s stated vision is to center children in state government and to improve “front‑door” access for families. The department currently has about 550 employees working under the new structure and expects additional transfers and staff through summer 2025 as remaining programs move from the Department of Human Services, the Department of Education and the Department of Public Safety.

Ashley Reisenauer, DCYF chief financial officer, gave a budget overview and said the agency projects roughly $3.7 billion in annual expenditures once transition accounting is complete. She emphasized the agency will oversee sizable federally funded programs: about $2.5 billion of DCYF’s projected spending is federal funds and the agency also administers large technical and fiduciary flows — for example, approximately $640 million per year in child‑support fiduciary funds. Reisenauer said DCYF manages a large grant portfolio — roughly $2.4 billion in grant spending — and noted that the Supplemental Nutrition Assistance Program (SNAP) food assistance is the largest single grant expenditure at about $1.2 billion annually.

Summerfield described the agency’s four administrations: Child Safety and Permanency (including child protection, ICWA and Minnesota Indian Family Preservation Act compliance), Early Childhood (early learning and child care workforce supports), Economic Opportunity and Youth Services (including the Office of Economic Opportunity and youth justice programs), and Family Well‑Being (cash assistance, child support and employment services). She said the agency will continue a community engagement and strategic planning process led in partnership with Wilder Research and the Children’s Cabinet.

Several senators raised concerns about child‑care licensing and regulatory burden on small, in‑home providers. Senator Jason Gruenhagen and other senators said that extensive new licensing requirements have pushed some long‑time in‑home providers to close their operations and that the result is fewer available child‑care slots in rural areas. Senator Kranz and others urged the agency to prioritize flexibility and to avoid rules that force small providers out of the market.

Summerfield said DCYF will coordinate with DHS on licensing transitions and that the agency would take lawmakers’ feedback into consideration as it implements transferred programs and licensing modernization. On inspector general staffing, she said DCYF expects to hire an inspector general in the coming weeks and plans a knowledge‑transfer period with DHS before that official assumes a DCYF post.

Where DCYF is housed: Summerfield said DCYF staff are located on two floors in the Lafayette building, where some staff had already been colocated; additional staff transfers will continue through July 2025.

Why it matters: DCYF consolidates multiple child‑ and family‑facing programs into a single agency and will administer large federal and state programs that affect childcare, child welfare, SNAP, early learning and youth services. Senators signaled they will closely scrutinize licensing changes and the budget proposals that affect providers and counties.

Next steps: DCYF leaders said they will provide more detail in future hearings, complete remaining program transfers and continue strategic planning and community engagement.","mediaType","Video","parentTitle","Committee on Health and Human Services - 01/23/25","oneSentenceSummary","The Department of Children, Youth and Families, launched July 1 after 2023 legislation reorganized several programs, is operating in transition and expects roughly $3.7 billion in annual expenditures when fully transitioned, department leaders told the Health and Human Services Finance and Policy Committee on Jan. 23.","taxTitle","2025 Legislature MN, Minnesota","taxId",77817,"location","Minnesota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6373166,"Lawmakers press DHS on fraud controls; agency seeks more authority and technology funding",173,2066000,2239000,"/Search/View?dp=1&key=2146275-b13ba855a5027e0f3f4841010ff40049&start=2066&end=2239","https://assets.pipeline.soar.com/2146275-b13ba855a5027e0f3f4841010ff40049/thumbnail_2066000.jpg","/articles/6373166/Minnesota/Lawmakers-press-DHS-on-fraud-controls-agency-seeks-more-authority-and-technology-funding","https://secure.pipeline.soar.com/6373166-f9b316ecf68fd84ba75b28a6e9c83dfe/orig.mp4?Expires=1771064935&Signature=eb6GRl31ZfOx~r1NK7vLPEBfWnWYY6UWFAl4deP94Cehn-Swiv5hRDWiLCsI2VI~Folp6vS57wcc06r6fFlVRZt2XP9WiySaC9ptg9SwMyEoWPLZkXweIZddihu7Fa3SmUXlxCffd6YOtuxih0J2wRQVZpVuUQTNCMEjGlHX1jKskb65Pma7-VBuOvJC60rM1J318NePp8YYxMQ2~L5j2-i62BJEL26iKLhkgZCwfeqkODS5Sc2Yx4bwA4z~77KHBgUknUfeFfMd-nKLUcP6OH~w27tHjtepEyHA3Xq7cGEMq0KtUDMr-9AxTckjy18G1rIBNVhHdFh63NkRvCMHSA__&Key-Pair-Id=KUT5TJCACFTXG","A bipartisan group of senators on Jan. 23 pressed the Minnesota Department of Human Services about fraud, program integrity and the staffing and authority of the office that investigates suspected misuse of public benefits.

Senator Jason Gruenhagen asked DHS officials about documented fraud and whether the department uses modern analytic tools to detect improper payments. Gruenhagen cited figures he said had been circulated to members and said some sources estimate fraud in the hundreds of millions or more. “Do you have some type of mechanism to deal with fraud?” Gruenhagen asked.

Elise Bailey said DHS uses available data analytics and program integrity staff but acknowledged the department has not had the resources to develop the “dynamic” automated systems used in some private‑sector fraud detection. “We don't have that kind of dynamic system right now because we haven't had the resources,” Bailey said, and added the governor’s budget seeks resources to expand analytic capacity and modernize systems.

Multiple senators asked for stronger, clearer investigative authority and for an independent, well‑resourced inspector general's office. Senator Curran said prior whistleblower accounts and high‑profile provider fraud cases show a pattern and asked DHS what would be done differently to ensure sustained accountability rather than “a shuffle in the chairs.” Bailey said the governor’s proposal would give DHS more legal authority to withhold payments when fraud is suspected, licensing changes for certain unlicensed services and funding for improved analytics.

On inspector general staffing, senators said the position was unfilled in prior periods and pressed DHS for the current FTE counts and organization. Bailey said she did not have exact FTE counts at the hearing but committed to provide them. Separately, Jennifer Summerfield of the newly formed Department of Children, Youth and Families told the committee DCYF expects to hire an inspector general in the coming weeks and intends a knowledge‑transfer period with DHS before that official takes a DCYF post.

Why it matters: Committee members argued that fraud diverts limited resources from needy Minnesotans, and they asked DHS to show how investments in technology and authority would pay for themselves. DHS said the governor’s budget includes proposals to expand program‑integrity tools and legal authority but that the department would return with more detail.

What lawmakers asked for: senators requested DHS return with more precise staffing numbers for program‑integrity work, details on proposed payment‑withhold authority, cost‑benefit estimates for proposed technology investments and follow‑up on eligibility procedures for noncitizens and how federal matching rules apply.

DHS response: DHS officials said they would provide additional staffing and eligibility details and said they are exploring partnerships and analytics approaches to detect suspicious claims earlier.","Senators pressed DHS on fraud, program integrity and the office of inspector general during a Jan. 23 committee hearing. DHS said it uses data analytics but lacks resources for more sophisticated detection and is seeking new authority and technology in the governor's budget.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6373170,"DHS presents $23.8 billion FY26 budget, says Medicaid enrollment remains above pre‑pandemic levels",4074,690000,4764000,"/Search/View?dp=1&key=2146275-b13ba855a5027e0f3f4841010ff40049&start=690&end=4764","https://assets.pipeline.soar.com/2146275-b13ba855a5027e0f3f4841010ff40049/thumbnail_690000.jpg","/articles/6373170/Minnesota/DHS-presents-238-billion-FY26-budget-says-Medicaid-enrollment-remains-above-prepandemic-levels","https://secure.pipeline.soar.com/6373170-1f5f6ca459b7da282db583bd592e313b/orig.mp4?Expires=1771064935&Signature=a7kR9aK-qbdve58IwxQAgqhArN9kswqrxgUt1S7Stc6J33nNYnFCdqquPh3VSe2w8TMRPwDF4JF-bFJRZD0VL4SJfeFBSALGwQiTjyzKIwXXjO68ZcEV5b726UTNZZDLPUE7MaqvDRedElS~LdVJ53w2qNC1nbWce6eunyTOeY6DqvCfuU1-8PK9IccFa0uce-HeaV5-zXoCiDX~sZpUXaa1DwY-JRrAQUTuSotrFteFTWBLUixDN39mddygXZX17wbYBOgI1t4zZ2LL-tAWMBqOqLea44CzJgRnLviqew2zvqavf0xeG~nSpYZeHw6po-Zy4bGdbrNcXom6vHrCwQ__&Key-Pair-Id=KUT5TJCACFTXG","The Minnesota Department of Human Services on Jan. 23 told the Health and Human Services Finance and Policy Committee the agency is operating with about $23.8 billion in all funds in fiscal year 2026 after a 2023 reorganization and continues to administer the bulk of state Medicaid programs.

DHS budget director Elise Bailey told the committee the reorganized agency — which she called “DHS 2.0” after lawmakers moved children-and-family and direct-care programs into separate departments — will have roughly $23.8 billion in all funds in FY26 and about 2,000 employees. “Our new identity is taking shape,” Bailey said, adding the agency’s revised mission emphasizes helping “people thrive rather than just meeting their basic needs.”

The department said federal funds remain the largest revenue source. Bailey reported roughly $12.6 billion in federal funding in the FY26 forecast, $9.4 billion from the state general fund, $1.1 billion from the Health Care Access Fund and about $700 million from other funds. She said roughly 89% of the DHS budget goes to Medical Assistance (Medicaid) and that grants and operations make up small slices of the remainder.

Jogo Reese, division director in DHS’s Health Care Administration, walked the committee through program-level details and financing mechanics, including how federal matching rates vary by population and service. Reese said recent federal financial participation for Minnesota in federal fiscal year 2025 is about 51.16% and noted special matches can be higher or lower for specific services or populations.

On enrollment, Reese said Medicaid rolls have not returned to pre-pandemic lows. “So far we’ve settled at about 1,250,000 people,” Reese said, describing the post‑public‑health‑emergency “unwinding” and reenrollment process. Bailey also showed FY24 service counts, noting roughly 1.3 million people received Medicaid that fiscal year and that nearly half of Minnesota children are touched by DHS programs in some way.

Bailey and Reese described where Medicaid spending is concentrated: long‑term care and waiver services accounted for a large portion of MA spending — about $10 billion in FY26 projections — while eligibility categories such as families with children, older adults and people with disabilities show different state/federal funding mixes. Bailey highlighted that adults without children receive a higher federal match (about 90% under a particular category she noted), which affects how changes in those categories affect the state general fund.

Committee members asked for additional detail. Senator Bobby Joe (Senator Abler) and others asked DHS to return with modeling linking proposed budget changes to specific program capacity — for example nonemergency medical transportation, elderly waivers, nursing‑home capacity and group‑home services. Senator Jason Gruenhagen asked for more detail about how much of the Medicaid share comes from the general fund versus the Health Care Access Fund; Bailey said the HCAF portion is small and offered to supply the committee with the specific split.

Why it matters: DHS programs cover large shares of Minnesota residents and account for a growing share of state spending. Committee members pressed agency officials for program‑level detail and requested additional analyses tying budget proposals to service availability and access across rural and urban counties.

Looking forward: DHS staff pointed committee members to the department forecast and budget book for more detail and agreed to return with follow‑up information on requested splits and modeling.","Department of Human Services officials told the Health and Human Services Finance and Policy Committee on Jan. 23 that the agency has reorganized after a 2023 split, will oversee roughly $23.8 billion in FY26 and continues to serve about 1.25 million Minnesotans on Medicaid following the federal public health emergency unwinding.","actionData","errors"]

Article not found

New Department of Children, Youth and Families begins operations with $3.7 billion budget; childcare licensing and in‑home daycare concerns raised

Lawmakers press DHS on fraud controls; agency seeks more authority and technology funding

DHS presents $23.8 billion FY26 budget, says Medicaid enrollment remains above pre‑pandemic levels