Minnesota Gov. Tim Walz Ends Bid for Third Term Amid Fraud Scandal Scrutiny

ST. PAUL, Minn. (AP) — Minnesota Gov. Tim Walz announced Monday that he is abandoning his reelection campaign for a third term, a surprise move that comes amid intensifying criticism of his administration's handling of widespread fraud allegations in state childcare and welfare programs.

In a statement released early Monday, Walz, a Democrat who served as his party's vice presidential nominee in 2024, said he had reevaluated his decision to run over the holidays and concluded he could not fully commit to a campaign while addressing ongoing challenges facing the state.

"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. So I've decided to step out of the race and let others worry about the election while I focus on the work."

Walz, who took office in 2019, had formally launched his bid for an unprecedented third consecutive term in September 2025. The announcement caps a turbulent period for the governor, whose national profile rose during the 2024 presidential cycle but faced renewed pressure at home over fraud investigations.The decision follows months of growing scrutiny into alleged abuse of taxpayer-funded programs, particularly in childcare services, where investigators have uncovered significant improper payments. Republicans have accused Walz's administration of failing to act on early warnings and have sought to tie the governor personally to the scandal, though he has not been accused of any wrongdoing.

The issue has drawn national attention, including repeated attacks from President Donald Trump and his administration, which has highlighted the fraud as part of broader criticisms of Democratic governance.

Walz has countered that his administration has worked to crack down on the fraud and accused Republicans of politicizing the matter to undermine social programs. The timing of Walz's exit — reported first by political analyst Blois Olson late Sunday — stunned many in Minnesota political circles. Olson, citing sources, said Walz met with Sen. Amy Klobuchar on Sunday to discuss his future, fueling speculation that Klobuchar may enter the race for the Democratic-Farmer-Labor (DFL) nomination.

Democrats have dominated statewide elections in Minnesota for nearly two decades, with no Republican winning a major statewide race since former Gov. Tim Pawlenty's reelection in 2006. Walz's departure opens the field for potential DFL contenders, while Republicans have already seen interest from several high-profile candidates, including House Speaker Lisa Demuth, former gubernatorial nominee Scott Jensen, and businessman Mike Lindell.Walz's decision also comes against the backdrop of a difficult 2025 for the state, including the June assassination of former House Speaker Melissa Hortman, a close ally, and her husband — an event that prompted baseless conspiracy theories amplified by some Republicans, including Trump.

Walz is scheduled to hold a news conference at 11 a.m. CT to discuss his announcement further.Political observers say the move could stabilize the DFL's prospects in the 2026 midterm elections, which are expected to be competitive amid a national environment shaped by Trump's second term.

Minnesota remains one of the few states where Democrats hold a strong edge in statewide races, but the fraud controversy had begun to erode some of that advantage.Walz said he felt no regret about stepping aside.

"Like many Minnesotans, I was glad to turn the page on 2025," he said. "But I’m passing on the race with zero sadness and zero regret. After all, I didn’t run for this job so I could have this job. I ran for this job so I could do this job."

The governor's full term ends in January 2027. Lt. Gov. Peggy Flanagan, who is pursuing the open U.S. Senate seat being vacated by retiring Sen. Tina Smith, is not positioned to succeed Walz automatically.

No immediate successor announcement has been made by the DFL, though Klobuchar's interest could quickly reshape the primary landscape.

The Associated Press contributed to this report.