Minnesota Gov. Tim Walz just pulled the plug on his third-term bid amid a jaw-dropping welfare fraud scandal.
In a dramatic Monday announcement, Walz declared he’s stepping away from the gubernatorial race to grapple with what’s been called the nation’s largest COVID-era fraud scheme, involving over $1 billion swiped from state and federal coffers.
Having kicked off his campaign in September, Walz has been under fire lately from President Donald Trump, Republican lawmakers, and even some Democrats over this colossal mess.
This scandal, with charges dating back to 2022, implicates over 90 individuals, largely from Minnesota’s Somali community, in a scheme abusing meal programs, housing aid, daycare operations, and Medicaid services.
Prosecutors claim the stolen funds—possibly climbing to $9 billion per the U.S. attorney in Minnesota—bankrolled luxury goods, property deals, exotic trips, and potentially even overseas terrorist activities.
Walz took ownership of the crisis last month, ordering a stop to dubious payments and an external audit of Medicaid billing, yet the stain on his leadership seems permanent.
“This is on my watch, I am accountable for this and, more importantly, I am the one that will fix it,” Walz insisted last month, shouldering the blame.
That pledge feels flimsy as the Trump administration has frozen federal child-care funding to Minnesota, while a viral video by YouTuber Nick Shirley exposing alleged daycare scams has fueled national outrage.
Walz revealed on Monday, after holiday talks with family and advisors, that he couldn’t balance a campaign with managing this disaster.
“Walz allowed fraudsters to steal billions from taxpayers, and did nothing,” slammed Joe Teirab, a former federal prosecutor tied to the Feeding our Future case, echoing Republican scorn.
GOP voices like Tom Emmer with a curt “Good riddance” and state Rep. Kristin Robbins celebrate Walz’s exit as a win for oversight, cautioning that any Democratic replacement inherits this fiasco.
Walz, opting to govern for the next year, dodged questions during his announcement but promised clarity on Tuesday, even as a House Committee hearing looms on February 10.
Democratic leaders like Gov. Andy Beshear and DNC Chair Ken Martin express confidence in holding the governorship, while Sen. Amy Klobuchar, after a Sunday meeting with Walz, remains silent on her own ambitions.
Walz accused Trump and his allies of sowing division and targeting Minnesota’s core values and programs, but with public faith rattled by this scandal, his critique may lack punch.
Whether this retreat shields Walz from further scrutiny remains doubtful, as the fallout from this billion-dollar fraud continues to reverberate across the state and beyond.
