The Minnesota Department of Human Services has filed a civil lawsuit against a North Minneapolis church, alleging it misused millions in taxpayer-funded grants intended for mental health, substance abuse and violence prevention services.
According to the complaint, Zion Baptist Church accepted about $2.48 million between October 2022 and April 2025 through two state grant contracts but failed to meet key requirements tied to those funds.
The lawsuit, which was filed earlier this month in Minnesota District Court, alleges the church breached its contract with the state and was unjustly enriched by retaining funds without sufficient evidence the services were provided.
Court documents state that Zion was required to use the funds for approved expenses, maintain documentation and provide proof of services upon request.
However, the Minnesota Department of Human Services claims the church submitted records with “numerous inconsistencies, billing irregularities, and other documentation problems.”
The state agency is seeking to recover grant funds it says were not used as intended.
In a statement to The Center Square, DHS clarified the case is a civil action, not a criminal prosecution, and emphasized its role in overseeing grant funding.
“The Minnesota Department of Human Services holds grantees accountable for the services they agreed to provide in their grant contracts,” the agency said. “Complete and accurate documentation is critical to the integrity of Minnesota’s human services.”
DHS added that failures to meet those standards can waste limited state resources and prevent residents from receiving essential services.
