Temporary 245D licensing moratorium: Refunding fees for canceled applications

(Rev. July 23, 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 are now 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).
    • The refunds for these application fees will be made automatically. Payment of these refunds began the week of March 23, 2026, and continued through May 2026. On July 23, 2026, DHS emailed the authorized agent or controlling individual listed on the application for any eligible applicant that did not receive their refund through this process in order to complete the refunds through a separate process.  
  • For 245D license applications received by DHS on or before March 31, 2024, that are now 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 will be required to apply for a refund.
    • On July 23, 2026, DHS emailed a message to the authorized agent or controlling information listed on the application for any eligible applicant about an upcoming process to apply for a refund. More information will be emailed to applicants that this situation affects and posted on the DHS website.

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.