The Walz administration is shaking up the leadership structure within the Minnesota Department of Human Services after the Trump administration announced it is withholding more Medicaid funding over fraud concerns.
State Medicaid Director John Connolly will take over as Commissioner of DHS, while current Commissioner Shireen Gandhi agreed to remain on as Deputy Commissioner to oversee Medicaid programming for the immediate future.
In a press release, Governor Tim Walz (DFL) says the state has made significant progress in rooting out fraud and the change in leadership builds on that.
“While President Trump and Dr. Oz play politics with Minnesotans’ health care, we are focused on stability and results,” said Walz. “We’ve made significant progress to strengthen programs and root out fraud. Today, we’re building on our success by putting an even stronger structure in place; adding leadership, improving oversight, and ensuring these programs are managed with the discipline and accountability Minnesotans expect. That’s how we protect care and deliver for families.”
Republicans blasted the move saying that it's another example of mismanagement by the governor. They also point out that Gandhi, who was appointed as temporary commissioner just months ago, was to face a confirmation hearing Tuesday in the legislature. That's since been canceled.
“My goal has been to hand off the Minnesota Department of Human Services in a stronger position to the next administration in 2027," Gandhi said in a statement. "Because I remain steadfast to these goals, I have accepted Temporary Commissioner Connolly’s request that I return to my position as deputy commissioner. I am honored to continue serving the people of Minnesota for the last 8 months of the Walz Administration.”
There were reports from inside the DFL caucus saying the confirmation of Gandhi could have been a distraction to DFL Senators when fraud remains the top issue on voters minds in Minnesota.
"Musical chairs won’t solve the DFL fraud problem. Neither will Amy Klobuchar, who, for 20 years, has been silent on fraud," said House GOP Speaker Lisa Demuth, who is also running for governor against Klobuchar.
Gandhi joined DHS in 2017 and has 30 years of leadership experience in health care. She was appointed temporary commissioner in February 2025 and commissioner in February 2026.
