Democratic Minnesota Gov. Tim Walz announced Jan. 5 that he will not seek a third term, exiting the 2026 gubernatorial race amid mounting scrutiny of his administration’s handling of alleged fraud in state programs.
“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,” Walz said in a statement. “So I’ve decided to step out of the race and let others worry about the election while I focus on the work.”
Walz, a two-term governor who gained national prominence as former Vice President Kamala Harris’ running mate in her unsuccessful 2024 presidential campaign, had announced in September 2025 that he planned to seek a third term. He was also widely discussed as a potential 2028 presidential contender.
His decision follows growing political pressure tied to alleged fraud involving Minnesota’s Medicaid waiver programs and other state-run initiatives. As CatholicVote previously reported, Assistant U.S. Attorney Joe Thompson said Dec. 18 that fraud across multiple state programs could ultimately exceed $9 billion. The Department of Justice has charged 98 defendants to date in related cases.
In his statement, Walz acknowledged allegations of fraud but rejected claims that his administration failed to act.
“For the last several years, an organized group of criminals have sought to take advantage of our state’s generosity,” Walz said. “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 his administration implemented “systemic changes” to address the issue, such as firing employees, cutting off funding streams, securing remaining programs, and pursuing criminal prosecutions.
He also criticized President Donald Trump and other Republicans, arguing they “want to make our state a colder, meaner place.”
“They want to poison our people against each other by attacking our neighbors,” Walz said. “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.”
Walz’s remarks come as the Trump administration has moved to freeze certain child care payments and halt other federal funding streams to the state. In one of the major cases, federal prosecutors allege that the nonprofit Feeding Our Future siphoned more than $250 million in taxpayer funds during the COVID-19 pandemic via fake meal sites, shell companies, and false invoices tied to meal distribution locations and some child care centers, as CatholicVote reported.
Attention is now turning to potential successors. Sen. Amy Klobuchar, D-Minn., is widely viewed as a leading contender to enter the race. The New York Times reported that Klobuchar met with Walz prior to his announcement.
According to The Hill, Minnesota Secretary of State Steve Simon and Minnesota Attorney General Keith Ellison, both Democrats, have also been floated as potential candidates.
Democrats have won every statewide office in Minnesota since 2006, Axios reported.
On the Republican side, Minnesota House Speaker Lisa DeMuth, MyPillow CEO Mike Lindell, and state Rep. Kristin Robbins are running for governor, according to FOX 9. Other candidates include Minneapolis attorney Chris Madel, former state Sen. Scott Jensen, former mixed martial arts fighter Brad Kohler, retired U.S. Army veteran Kendall Qualls, former city council member Jeff Johnson, and retired Naval intelligence officer Phillip Parrish.