Minnesota Governor Tim Walz demoted state Department of Human Services Commissioner Shireen Gandhi to deputy commissioner on Monday, just 70 days after her appointment to the role.

The demotion comes amid an ongoing dispute with federal authorities over alleged Medicaid fraud. The federal government has paused $259.5 million in Medicaid funding for Minnesota's North Star program while investigating the allegations.

Gandhi's brief tenure as commissioner was marked by the funding battle with the Trump administration over the fraud claims. The state has been working to address federal concerns about the program's operations and oversight.

The timing of Gandhi's demotion suggests the funding dispute played a role in Walz's decision to restructure leadership at the department. The governor has not publicly detailed specific reasons for the personnel change beyond the ongoing federal review.

The Department of Human Services oversees critical state programs including Medicaid, which provides healthcare coverage for low-income residents. The federal funding pause affects the department's ability to operate these programs at full capacity while the investigation continues.