Tim Walz ends reelection bid amid Somali fraud scandal

Minnesota Gov. Tim Walz pulled out of the state’s 2026 gubernatorial election on Monday after weeks of media attention over alleged state funding fraud. Issues within Minnesota required Walz’s full attention, which he could not give while running a campaign, according to the statement.

The incumbent first launched his bid for a historic third term in September, about a year after he was named as Vice President Kamala Harris’ running mate in the 2025 presidential election. Every minute spent defending his own political interests is a minute he couldn’t defend Minnesota against the criminals preying on the state’s generosity and cynics who aim to sow division, Walz said.

Minnesota received national attention after investigators exposed what they said was over $250 million in fraudulent federal food aid intended for children during the COVID-19 pandemic among predominantly Somali communities. The issue again gained prominence over the holiday season after an independent journalist went viral for exposing what he said was more alleged fraud. Nick Shirley said he documented visits to various childcare centers that received state funding, only to find them seemingly inactive.

Federal health officials froze all child care payments to the state days after the 43-minute video was posted. The U.S. Small Business Administration on Friday also paused annual funding to the state and barred nearly 7,000 borrowers from receiving loans, citing fraud investigations.

Did Walz address the fraud? The governor opened the four-page statement Monday by describing 2025 as a difficult year that ended on a sour note. Organized groups of criminals sought to take advantage of Minnesota’s generosity over the last several years, and now political actors are trying to take advantage of this crisis, he said.

President Donald Trump and his allies want to make Minnesota a colder, meaner place by poisoning neighbors against each other and taking federal funding meant for children, the governor claimed. Fraud is concerning, but state officials have made systemic changes to combat it over the last few years, Walz said. He described working with legislators, removing ineffective employees, and partnering with federal agencies to uproot fraud.

Walz went on to say everyone has a role in fighting these fraudsters, but accused Republicans of playing political games that were only making that fight harder to win. Walz said those he characterized as right-wing conspiracy theorists were breaking into daycare centers and demanding access to children, alluding to Shirley’s viral reporting. It’s disgusting, dangerous, and shameful, Walz said. Walz specifically welcomed the FBI and the U.S. attorney’s office to help uncover fraud, but slammed the Trump administration for demonizing the largely Somali community accused of perpetrating the fraud.

Walz said he had no sadness or regret about letting others worry about the race while he gave his 24/7 focus to the state. The governor was confident that another Democratic–Farmer–Labor Party candidate would replace him.

Dig deeper: Read my report about MyPillow CEO Mike Lindell launching his bid for Minnesota governor last month.