Tim Walz Drops Out Of Governor’s Race After Somali Fraud Scandal, Blames Trump

Democratic Minnesota Gov. Tim Walz dropped his 2026 reelection bid Monday.

Walz, the failed 2024 Democratic vice presidential nominee, announced the news in a statement, claiming that the Trump administration wants to make his state “a colder, meaner place.” Walz’s announcement comes after his administration has recently faced national scrutiny over fraud allegations related to predominately Somali-run operations in the Minneapolis–St. Paul area.  (RELATED: Trey Gowdy Explains What Spared Tim Walz From ‘Running For His Life’ From MN Taxpayers)

“For the last several years, an organized group of criminals have sought to take advantage of our state’s generosity. And even as we make progress in the fight against the fraudsters, we now see an organized group of political actors seeking to take advantage of the crisis,” Walz said in the statement.”I won’t mince words here. [President] Donald Trump and his allies – in Washington, in St. Paul, and online – want to make our state a colder, meaner place. They want to poison our people against each other by attacking our neighbors. And, ultimately, they want to take away much of what makes Minnesota the best place in America to raise a family. They’ve already begun by taking our tax dollars that were meant to help families afford child care. And they have no intention of stopping there.”

“Make no mistake: We should be concerned about fraud in our state government,” Walz continued. “We cannot effectively deliver programs and services if we can’t earn the public’s trust. That’s why, over the past few years, we’ve made systemic changes to the way we do business.”

Walz added that his administration has “gone to the legislature time and again to get more tools to combat fraud.”

News: Minnesota Governor Tim Walz announces he won’t run for reelection:

A portion of his statement 👇 pic.twitter.com/juPqGYwFuQ

— Sahil Kapur (@sahilkapur) January 5, 2026

“We’ve fired people who weren’t doing their jobs,” Walz said. “We’ve seen people go to jail for stealing from our state. We’ve cut off whole streams of funding, in partnership with the federal government, where we saw widespread criminal activity. We’ve put new locks on the doors of our remaining programs, and we’ve hired a new head of program integrity to make sure those locks can’t be broken.”

The Minnesota governor added that his administration is “taking fast, decisive action to solve this crisis.”

“There’s more to do. A single taxpayer dollar wasted on fraud is a dollar too much to tolerate. And while there’s a role to play for everyone – from the legislature to prosecutors to insurance companies to local and county government – the buck stops with me,” Walz said. “My administration is taking fast, decisive action to solve this crisis. And we will win the fight against the fraudsters.”

“But I cannot abide the actions of the political leadership in Washington – these opportunists who are willing to hurt our people to score a few cheap points. They and their allies have no intention of helping us solve the problem – and every intention of profiting off of it.

Walz also said that he is passing on the gubernatorial race “with zero sadness and zero regret.”

“I know this news may come as a surprise. But I’m passing on the race with zero sadness and zero regret,” Walz added. “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. Minnesota faces an enormous challenge this year. And I refuse to spend even one minute of 2026 doing anything other than rising to meet the moment. Minnesota has to come first – always.”

A recently released viral documentary produced by Nick Shirley, 23, an independent journalist, included visits to a spate of licensed childcare and healthcare providers in Minnesota participating in state-funded assistance programs which were seemingly non-operational. Walz’s office later claimed that his administration had “strengthened oversight” in response to the fraud schemes.

Federal Bureau of Investigation (FBI) Director Kash Patel wrote in a Dec. 28 X post that his agency was “aware of recent social media reports in Minnesota.”

“However, even before the public conversation escalated online, the FBI had surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes exploiting federal programs,” Patel wrote in the social media post. “Fraud that steals from taxpayers and robs vulnerable children will remain a top FBI priority in Minnesota and nationwide.”

The Department of Health and Human Services (HHS) announced on Dec. 30 that the agency was freezing all federal child care payments to Minnesota amid officials probing allegations of widespread fraud in the state’s subsidy system. Additionally, Small Business Administration (SBA) Administrator Kelly Loeffler announced Thursday night that her agency has suspended thousands of “Minnesota borrowers” amid “suspected fraudulent activity” involving COVID pandemic-era lending programs.

Walz conceded during an interview with New York Magazine in late March 2025 that he can sometimes be a “train wreck” due to his tendency to speak “from the heart.”

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact [email protected].