Minnesota Gov. Tim Walz, the two-term Democrat and 2024 vice presidential candidate for the Democrats, announced Monday that he is dropping his campaign for an unprecedented third term, citing the need to focus on a massive fraud scandal plaguing the state’s social services programs.
The decision comes amid intense scrutiny over allegations that billions of dollars in taxpayer funds primarily from Medicaid and child nutrition programs have been stolen through fraudulent schemes, many involving providers in the Somali community. Federal prosecutors have estimated potential losses exceeding $9 billion, though hundreds of millions have been documented in charges against dozens of individuals.
In a prepared statement read at a news conference, Walz said: “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. 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 launched his reelection bid in September, expressed confidence he could have won but emphasized the 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. My administration is taking fast, decisive action to solve this crisis.”
He departed the podium without taking questions, leaving with “zero sadness and zero regret.”
The scandal intensified late last year after a viral video by conservative influencer Nick Shirley highlighted allegedly inactive child care centers receiving millions in funding, prompting federal freezes on payments and surges in investigations.
Republicans celebrated the announcement. “After presiding over one of the biggest fraud scandals in history it’s no wonder that Tim Walz is being forced to drop his re-election bid,” said Republican Governors Association Communications Director Courtney Alexander.
White House spokeswoman Abigail Jackson added: “His only statement should be apologizing to hardworking Minnesotans for allowing their tax dollars to be misused so badly.”
Walz’s exit opens the Democratic field, with Sen. Amy Klobuchar reportedly considering a run. Republicans, eyeing their first statewide win since 2006, include House Speaker Lisa Demuth and MyPillow CEO Mike Lindell.