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The Minnesota governor said growing political strain and ongoing investigations made it difficult to balance campaigning with governing ahead of the 2026 election
Minnesota Governor Tim Walz announced Monday that he is ending his bid for a third term, a move that comes less than 10 months before the 2026 gubernatorial election. The decision was widely anticipated as Minnesota’s political climate has grown increasingly strained amid heightened scrutiny over alleged misuse of federal funds tied to fraudulent day-care 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. So I’ve decided to step out of the race and let others worry about the election while I focus on the work,” said Walz, a Democrat who was also the 2024 nominee for Vice-President. Walz initially announced his intention to seek a third consecutive term last year, however, amid the controversy, his approval ratings have also dropped further.
WATCH: Tim Walz is OUT after billion dollar fraud scandal blows up in his face 🤯 pic.twitter.com/GkqKRXeFuu
— OutKick (@Outkick) January 5, 2026
Federal prosecutors and auditors have raised concerns about fraud in multiple Minnesota programs, and some reporting suggests that improper payments across several programs could be in the billions, however, that estimate is not yet final. As Los Angeles previously reported, the scandal intensified after a viral video by independent journalist Nick Shirley, who claimed fraud at a number of Minnesota daycare centers. In response to the allegations, the US Department of Health and Human Services announced increased requirements and audits in child care funding; plus, federal agencies, including the Small Business Administration, have taken steps to suspend certain program participants while investigations continue.
🔥 Nick Shirley is back on the ground in Minnesota with new Quality Learing Center hoodies. pic.twitter.com/3pBEcWuk8E
— Breaking911 (@Breaking911) December 30, 2025
Walz acknowledged Monday that while he’s leaving the race with “zero sadness and zero regret,” however, he could not fully concentrate on a campaign while also managing the responsibilities of governor. Axios is reporting that Senator Amy Klobuchar, Attorney General Keith Ellison and Secretary of State Steve Simon are among the officials discussed as possible 2026 candidates for the Democratic Party.
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Lauren Conlin
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