Minnesota Gov. Tim Walz is ending his bid for a third term in the state’s top office, according to numerous reports, amid increasing scrutiny over his handling of government fraud.
Walz is to address reporters at the state Capitol at 11 a.m. No other Democratic-Farmer-Labor candidate has entered the race for governor so far. Blois Olson, a state political analyst, and KARE-11 TV cited sources close to Walz who said the governor is expected to withdraw from the race.
The news comes as the federal government and state Republican lawmakers continue to press him for answers on how the state potentially lost billions of federal dollars to Medicaid fraud schemes and other alleged scams.
In December, Assistant U.S. Attorney Joe Thompson told reporters that the state could have lost $9 billion or more to fraud in 14 “high-risk” Medicaid-funded programs since 2018.
Federal fraud indictments continue to emerge in housing and autism programs after a federal investigation first became public in the summer of 2025. Thompson described Minnesota as having an “industrial-scale” fraud problem.
Walz has pointed to federal prosecutions in fraud cases such as Feeding Our Future, where more than 50 of the 78 charged have been convicted, as a sign that fraudsters are being held accountable.
He also paused payments and ordered a third-party audit in high-risk programs, appointed an official to devise a new fraud prevention plan, and last January directed the state Bureau of Criminal Apprehension to create a fraud prevention unit.
But critics say these moves are largely retroactive and performative and question whether any state officials have been held accountable for creating an environment where fraud could occur.
Walz was first elected in 2018 and won a second term in 2022. No governor has served three consecutive terms in Minnesota history.
His 2026 pitch to voters has focused largely on opposing the administration of President Donald Trump and enacting new gun control laws to prevent more school shootings in the wake of the Annunciation Catholic School shooting in Minneapolis.
Related Articles
Nearly 12,000 apply for Minnesota’s paid leave program in first days
Kaohly Her sworn in as St. Paul mayor
Minnesota families are rattled by threat to cut federal aid for child care
Minnesota Democrats, child care providers push back on federal freeze
An intense White House response from a single viral video
Republicans running for governor in 2026 include MyPillow CEO Mike Lindell, state House Speaker Lisa Demuth; 2022 gubernatorial candidate Scott Jensen, a doctor who rose to prominence for his criticism of state COVID policy; state Rep. Kristin Robbins; attorney Chris Madel ;2022 Republican endorsement contender Kendall Qualls, a former congressional candidate; and businessman Patrick Knight.
No Republican has won statewide office in Minnesota since 2006.
Check back for updates on this breaking story.
Leave a Reply