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The Minnesota Department of Human Services (DHS) is implementing a temporary 245D licensing moratorium for Home and Community-Based Services (HCBS). This moratorium will go into effect on January 1, 2026, with an anticipated duration of 24 months, ending December 31, 2027.
Under this moratorium, DHS will:
- Stop accepting new applications for 245D licenses
- Stop adding new service lines to currently licensed providers, and
- Cancel all submitted applications currently in the queue.
DHS is taking this action because we have received an unprecedented increase in 245D applications over the past five years, which vastly outpaces the increase in the number of individuals participating in HCBS waiver plans. DHS is unable to catch up with the growing backlog of license applications while also upholding our federal commitments to reviewing every 245D licensed provider at least once every three years. Taking this pause will allow DHS to provide the necessary monitoring and reviews of existing 245D licensed providers and allow DHS licensors to contribute to effective program integrity oversight.
We recognize that implementing a temporary moratorium on a license type as far-reaching as 245D will have broad impacts. During the 24-month moratorium, DHS will focus licensing efforts on reconnecting with and reviewing providers that have not been evaluated in over three years to reestablish compliance with federal waiver plans, and on identifying post-moratorium strategies to ensure a flow of new applicants that better align with statewide service needs.
Exceptions
To ensure people across Minnesota can access the services they need, an exception process will be available based on requests from a lead agency. If an exception is granted, an existing or new provider may submit a license application or request to add new services, which will follow the standard review process and must meet all licensing requirements. Before January 1, 2026, DHS will finalize and publicly share the processes and criteria for granting exceptions requested by lead agencies.
ICS location requests
More information will be published in December 2025 regarding requests to add ICS locations to current 245D providers, including what exception process will be used.
If you have any questions regarding this moratorium, please contact your 245D (HCBS) licensor or call the DHS Licensing help desk at 651-431-6624.
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