Gov. Tim Walz drops out of 2026 Minnesota governor’s race amid criticism over his handling of fraud

Minnesota Gov. Tim Walz says he is dropping his reelection campaign amid increased criticism over his handling of fraud in the state. 

Walz initially announced his run for a third term as governor in September, but says he reevaluated the decision 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,” he said. “So I’ve decided to step out of the race and let others worry about the election while I focus on the work.”

He held a news conference after announcing he’d end his reelection bid. He took no questions, though he said he’d answer some on Tuesday while providing an update on the state’s new paid family leave program.

The two-term Democrat and former vice presidential candidate has faced scrutiny in the last several months over his handling of Medicaid fraud, which has cost the state as much as $9 billion, according to a top prosecutor. Walz has stated that his administration is taking aggressive measures to prevent future fraud.

“All across the state, Minnesotans are hard at work on this problem. Advocates, administrators, investigators are on the front lines defending the integrity of our state’s programs, and I want to thank them for their efforts,” Walz said. “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. And we will win the fight against the fraudsters.

Walz has also been the target of attacks by President Trump. On Thanksgiving, Mr. Trump used a slur for people with intellectual disabilities to describe Walz on his Truth Social platform. During a media availability Sunday, Trump called Walz “a very stupid, low-IQ governor.”

Over the weekend, Mr. Trump reposted a conspiracy theory video alleging Walz was behind the political assassination of Minnesota House Speaker Melissa Hortman.

Hortman, Walz’s close friend and political ally, was slain in her home alongside her husband on June 14. The man accused of killing the two of them, as well as injuring state Sen. John Hoffman and his wife Yvette, faces several federal charges, including two counts of murder.

Walz decried the president’s post, calling it “dangerous, depraved behavior.” 

Walz, a former Congressman and teacher, was first elected governor in 2018. During his tenure, he made several progressive victories, spurred in part by a once-in-a-decade DFL trifecta in the legislature. In the months of the 2023 legislative session, he was able to pass universal free school meals, legalize the use of recreational marijuana, and create a state program for paid family and medical leave. 

“I’m confident that a DFLer will hold this seat come November. I’m confident that I will find ways to contribute to the state I love even after I’ve left office next January. But there will be time to worry about all that later,” he said. 

A source close to Democratic Sen. Amy Klobuchar says she is considering running for governor, but has not made a decision. 

Walz added that he’s leaving the race with “zero sadness and zero regret.” 

“Most of all, I want Minnesotans to know that I’m on the job, 24/7, focused on making sure we stay America’s best place to live and raise kids. No one will take that away from us. Not the fraudsters. And not the President. Not on my watch,” he said.