Temporary 245D licensing moratorium: Refunding fees for canceled applications

(Rev. August 10, 2026) 

On January 1, 2026, the Department of Human Services (DHS) began a temporary moratorium on issuing new 245D licenses or adding new services to an existing 245D license for Home and Community-Based Services (HCBS). Unless a county, Tribal nation, or managed care organization submitted an exception request for an existing application by January 1, 2026, all remaining 245D license applications in queue and not yet assigned to a licensor for review were canceled.

Applicants that will not receive a license due to the temporary moratorium are eligible to receive a refund of the $500 fee submitted with their application. This is authorized by Minnesota Statutes, section 245A.03, subdivision 7a, paragraph (b).

  • For 245D license applications received by DHS between April 1, 2024, and December 31, 2025, that were canceled:
    • DHS has completed the process of automatically refunding application fees by crediting the money back to the original source of payment (for example, the credit card, debit card, or bank account associated with an e-check/ACH payment used for the application fee). Payment of these refunds began the week of March 23, 2026, and continued through May 2026. 
    • For any eligible applicant that did not receive their refund through the automatic process, DHS emailed on July 23, 2026, the authorized agent or controlling individual listed on the application about a separate process to apply for the refund. Additional information was emailed by DHS during the week of July 27, 2026, for the authorized agent or controlling individual to complete. 
  • For 245D license applications received by DHS on or before March 31, 2024, that were canceled:
    • Because DHS is unable to reverse payments made before April 1, 2024, applicants that submitted a 245D license application fee prior to that date are required to apply for a refund.
    • On July 23, 2026, DHS emailed a message to the authorized agent or controlling individual listed on the application for any eligible applicant about a process to apply for a refund. On August 7, 2026, DHS emailed the authorized agent or controlling individual about how to submit information for a refund.

For more information about the temporary moratorium for 245D licensing, refer to the DHS Licensing for Home and Community-Based Services - 245D providers webpage. If you have further questions, you can call our licensing help desk at 651-431-6624. The help desk is staffed Monday through Friday from 8:00 am to 4:00 pm.