Minnesota Gov. Tim Walz holds a news conference at the Minnesota State Capitol on Monday, Jan. 5, 2026, in St. Paul, Minn. (AP Photo/Giovanna Dell'Orto)

Minnesota Gov. Tim Walz (DFL) announced on Monday that he will not seek a third term as governor amid a series of fraud scandals in the state that have drawn national criticism.

Walz addressed the fraud in an official statement and claimed that he cannot do the work to fight against it while running for reelection.

“But as I reflected on this moment with my family and my team over the holidays, I came to the conclusion that I can’t give a political campaign my all,” Walz said. “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.”

 

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Also in the statement, which he read out loud Monday morning, the two-term governor chastised “an organized group of criminals” that took advantage of “our state’s generosity” and “an organized group of political actors seeking to take advantage of this crisis.”

Walz formally announced his intention to seek a third term last September, and his reelection outlook looked strong even after he and former Vice President Kamala Harris failed to secure the White House in 2024. However, reports of fraud in numerous state agencies under his control reached a critical mass last month.

A video posted by far-right YouTuber Nick Shirley claimed with little evidence that nearly a dozen day care centers in Minnesota were not providing services despite receiving federal funds. The video was shared by Vice President JD Vance and X owner Elon Musk, resulting in a firestorm of criticism and the freeze of all child care payments to Minnesota by the Trump administration.

State investigators found the accused childcare centers were operating normally, with investigations ongoing.

In wake of the scandals, President Donald Trump has repeatedly accused Walz of being incompetent and that Minnesota is a hub for fraud. Along with calling him an ableist slur, Trump has also gone as far as to imply Walz was responsible for the assassination of former Minnesota House Speaker Melissa Hortman (DFL-Brooklyn Park), who was killed alongside her husband in a home invasion last summer. Hortman’s family, Walz and other politicians have condemned the president sharing social media posts that baselessly allege Walz had something to do with the murders.

Several Minnesota lawmakers released statements about Walz’s announcement, including Minnesota Senate Majority Leader Erin Murphy (DFL-St. Paul).

“I want to thank Governor Walz for his years of dedicated service to Minnesota,” Murphy said. “His leadership has steered the state through some of the most difficult challenges in our history, through COVID and civil unrest, through chaotic, hostile presidencies, the assassinations of June 14 and murder at Annunciation, and he has met those moments for the well-being of Minnesotans.”

Other examples of fraud

The investigations started in 2021 with a scam involving Feeding Our Future, a program intended to help feed vulnerable children during the COVID-19 pandemic. In total, 78 people in Minnesota were charged with defrauding the program. At least 56 of the individuals plead guilty in their connection to the program allegedly defrauding more than $250 million in federal funds.

Then in December, Assistant U.S. Attorney Joe Thompson announced charges against five individuals accused of profiting millions from housing stabilization services funded through Medicaid.

Along with harassing Walz, Trump has also used the fraud scandals to spread racist, hateful messages about Minnesota’s Somali community, at one point calling them “garbage.”