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Updated: Jan 5, 2026 at 09:42 AM EST

 
By Khaleda Rahman
National Correspondent



 

Walz Out

Minnesota's Democratic Governor Tim Walz has said he will not run for a third term after his state was rocked by a multibillion-dollar fraud scandal that took place under his watch. Walz said in a statement on Monday morning that he "can’t give a political campaign my all" and pulled out of the race.

"Every minute I spend defending my own political interests would be a minute I can’t spend defending the people of Minnesota against the criminals who prey on our generosity and the cynics who prey on our differences," Walz said. “So I’ve decided to step out of the race and let others worry about the election while I focus on the work."

Why It Matters

Walz pulling out of the race is a stunning reversal of fortunes for the Minnesota governor and a blow to the Democratic Party. He was Kamala Harris's running mate in the 2024 presidential election and was seeking a third consecutive term as governor in a race the Democrats have dominated in recent years.

What To Know 

Walz has faced intensifying scrutiny and criticism over a series of fraud cases involving Minnesota’s welfare programs, including from President Donald Trump and Republicans.

There have been years of investigation that began with a massive $300 million pandemic fraud case involving the nonprofit Feeding Our Future.

Prosecutors said it was the country’s largest COVID-19-related fraud scam and that defendants exploited a state-run, federally funded program intended to provide food for children. So far, 57 people have been convicted, either because they pleaded guilty or lost at trial. Most of the defendants are of Somali descent.

A federal prosecutor said in December that more than half of the roughly $18 billion in federal funds that supported 14 programs in Minnesota since 2018 may have been stolen. Other fraud allegations are being investigated, including new allegations focused on child care centers.

Walz pushed back against the Trump administration after it announced last week that it would freeze child care funds to Minnesota. Walz said his office has spent years cracking down on fraud and called the move part of “Trump’s long game,” accusing the president of politicizing the issue. 

On Saturday, Walz and others condemned Trump for promoting baseless claims tying the murder of former Minnesota House Speaker Melissa Hortman to Walz. “Dangerous, depraved behavior from the sitting president of the United States. In covering for an actual serial killer, he is going to get more innocent people killed,” Walz wrote on X.

What People Are Saying 

Governor Tim Walz said in his statement: “Republicans are playing politics with the future of our state. And it’s shameful. I’ve said it before, and I’ll say it again: We welcome ideas from anyone, in any party, who wants to help us continue to stay ahead of the criminals."

Minnesota state Representative Kristin Robbins, a Republican running for governor, wrote on X on Friday: “Tim Walz should resign. He has done nothing to hold his agencies accountable for massive fraud in multiple programs. As Governor, I will bring accountability, protect whistleblowers, and stop payments to fraudulent providers.”

Republican Candidates React to Tim Walz Ending Campaign in Minnesota


Why It Matters

Walz, a Democrat and was then-Vice President Kamala Harris' running mate in the 2024 U.S. presidential election, said he would not run again for governor amid criticism from many within the GOP over a multibillion-dollar fraud scandal that has drawn attention to the state over the past few weeks. Walz himself has not been accused of fraud, though critics have accused the governor of not doing enough to stop it.

Prosecutors have said more than 60 people have been convicted of fraud in the state thus far, while more than 90 have been charged. Estimates of the cost to taxpayers have ranged from $250 million to $1 billion. Investigations by state and federal officials remain ongoing, with concerns raised that the overall fraud could be even larger.

Last month, one federal prosecutor said that $9 billion or more in federal funds allocated to 14 state-run programs since 2018 may have been stolen. Walz and other officials have disputed the amount but acknowledge the scale of the issue and their determination to solve it. Many of the defendants are of East African descent and believed to be part of Minnesota's Somali immigrant community, the largest in the United States.

What to Know

Minnesota House Speaker Lisa Demuth, a Republican running in the state’s gubernatorial race, discussed Walz’s exit from the race in an interview with Newsweek Monday afternoon.

“The announcement that Governor Walz made today on his intent not to seek a third term doesn't come as a surprise. What was more surprising was in September when he announced his intent to run for a third,” she said.

The Democrats’ eventual nominee will be someone who “stood beside Tim Walz while he spent an $18 billion surplus, while he's spent an increased state spending by another $10 billion dollars driving us into a deficit,” Demuth said.

“They stood by him and watched fraud just explode under his time of leadership also under his time as governor,” she added.

Still, she said she believes Republican and Democratic lawmakers in Minnesota can come together this year to target fraud in a bipartisan manner.

“We will continue working for people of Minnesota. Safeguards to end fraud are going to take top of mind, and that is not partisan. That's not Democrat or Republican,” she said. “That should be legislators, Senate and House members, coming together to do the right thing to protect taxpayer dollars so that they make it to those who need it the most.”

Lindell, however, said he would welcome a potential Klobuchar candidacy.

"Everyone says, ‘Oh, she’ll win.’ No she won’t,” he said.

He continued to question, “Where was Amy when all this fraud was going on?”

What People Are Saying

Minnesota Governor Tim Walz wrote in a statement announcing his decision not to run: ”Every minute I spend defending my own political interests would be a minute I can’t spend defending the people of Minnesota against the criminals who prey on our generosity and the cynics who prey on our differences. So I’ve decided to step out of the race and let others worry about the election while I focus on the work."

Senator Amy Klobuchar, a Democrat, wrote to X: “Governor Walz made the difficult decision to focus on his job and the challenges facing our state rather than campaigning and running for reelection. He has always dedicated his career to delivering for Minnesota — from providing school breakfast and lunches to our kids to passing gun safety legislation to maintaining our state’s AAA bond rating. He is a true public servant.”

What Happens Next

It’s unclear who may join the Democratic primary to replace Walz. Klobuchar, despite speculation, has not made a formal announcement. Both the Cook Political Report and Sabato’s Crystal Ball classify the race as Likely Democratic.