Autism Center Licensing Scandal EXPOSED

A stack of books with one open on top, in front of a chalkboard filled with mathematical equations

When only six out of five hundred autism centers bother applying for required licenses, you are witnessing not mere bureaucratic negligence but a systemic collapse in oversight that puts the most vulnerable children at risk.

At a Glance

Only 6 of 500+ unlicensed autism centers applied for licenses ahead of May 31, 2026 deadline, signaling provider defiance or indifference to state requirements
An Optum audit flagged 90% of autism service claims as problematic, revealing providers without basic credentials like phone numbers or websites billing Medicaid
Autism providers exploded from 41 to 328 between 2018 and 2023 with zero licensing oversight, creating a fraud paradise
Federal authorities withheld $515 million quarterly and filed first criminal charges, signaling enforcement shift from states to Washington
Autistic families face service disruptions while legislators demand accountability and state officials defend their response as adequate

The Collapse Nobody Saw Coming

Minnesota’s autism services sector experienced explosive growth without a single licensing requirement in place. Between 2018 and 2023, providers mushroomed from 41 to 328, a nearly eightfold increase fueled by Medicaid dollars and zero verification. Providers operated with no websites, no phone numbers, no credentials. They simply billed the state. This was not oversight failure—it was the absence of oversight by design or gross incompetence at the Department of Human Services.

The Smoking Gun Nobody Could Ignore

In late 2025, the state commissioned Optum to audit its autism program. The results were damning: 90% of claims flagged as problematic. Not suspicious. Not questionable. Problematic. Providers lacked basic business infrastructure. Some had no verifiable address. Others claimed to serve dozens of clients simultaneously across impossible geographies. The audit exposed what should have been obvious years earlier: the system was broken, and fraudsters knew it.

The state responded in February 2026 by imposing licensing requirements with a May 31 deadline. Six centers applied. Six. Out of five hundred. That number tells you everything about provider confidence in enforcement and state capacity. Either providers believe the state lacks teeth, or they know they cannot pass basic scrutiny. Both conclusions indict state leadership.

Federal Patience Runs Out

Washington did not wait for Minnesota to fix itself. The Trump administration, through the Centers for Medicare and Medicaid Services under Dr. Mehmet Oz, notified Governor Tim Walz in January 2026 of noncompliance and began withholding $515 million quarterly. Federal prosecutors filed the first criminal charges in February against defendants in kickback schemes tied to autism fraud. The message was clear: states cannot be trusted with vulnerable populations’ money.

The Human Cost of Indifference

While legislators posture and bureaucrats defend their analytics, autistic children and families face real consequences. Parents like Brad Trahan fear service disruptions if centers close. Thirteen high-risk providers have been paused from admitting new clients. Therapy slots vanish. Families scramble. The fraud did not hurt abstract budget lines—it hurt kids who depend on consistent, legitimate care. That reality gets buried under procedural debates about what “flagged claims” actually mean.

Rep. Kristin Robbins called the 90% figure “stunning.” Rep. Patti Anderson demanded medical standards. DHS Commissioner Shireen Gandhi defended the state’s response as serious and ongoing. But serious responses do not result in six license applications out of five hundred. Serious responses result in compliance or closure. Minnesota got neither.

What Comes Next

The May 31 deadline looms. The federal fund withholding continues. Criminal prosecutions proceed. State officials submit revised compliance plans that federal authorities scrutinize. Autistic families wait. The question is not whether fraud occurred—the Optum report and criminal charges confirm it. The question is whether Minnesota’s government can actually enforce standards or whether Washington must do it for them. The evidence so far suggests the latter.