Policy Update · January 2026

What the Minnesota 245D Licensing Moratorium Means for You

On January 1, 2026, Minnesota DHS imposed a temporary moratorium on new 245D provider licenses. The pause is scheduled to remain in effect through December 31, 2027. This post explains what the moratorium is, what it means for families and case managers searching for care, and what it means for the providers already operating under 245D.

What Is the Moratorium?

Under Minnesota Statutes section 245A.03, subdivision 7a and Executive Order 25-10, DHS stopped issuing new 245D licenses effective January 1, 2026. The moratorium is expected to last 24 months, ending December 31, 2027. DHS cited rapid provider growth that exceeded the waiver population and limited staffing to conduct required reviews.

What This Means for Families Seeking Care

New 245D providers cannot enter the market during this period. This means finding a qualified, licensed provider requires knowing exactly which existing agencies are accepting new clients. CareConnect maintains a verified directory of active 245D licensed providers accepting waiver clients across Minnesota.

What This Means for Licensed Providers

If you are already 245D licensed, your listing on CareConnect is more valuable than ever. Case managers and families who cannot find new providers are actively searching directories for existing ones.

List your facility on CareConnect →

How to Find a 245D Provider During the Moratorium

1. Search the MN DHS licensed provider list at mn.gov/dhs
2. Search CareConnect by county, waiver type, and service type
3. Contact your county case manager — they maintain regional lists

Is There an Exception Process?

Yes. Lead agencies (counties, MCOs, tribal nations) can request exceptions for cases where no licensed provider exists locally. Source: mn.gov/dhs moratorium exceptions page.