Democratic Gov. Tim Walz speaks during a news conference Tuesday, Jan. 6, 2026, in Minneapolis. (Alex Kormann/Star Tribune via AP)
Pointing to the controversy, the governor reiterated that "the buck stops with me. I'm accountable for this. And because of that accountability, I'm not running for office again.
"I have a year to continue to improve on a record that I think will stand up against anybody's, a record that has made Minnesota better," Walz argued.
Walz launched his Minnesota re-election bid in September, but in recent weeks has been facing a barrage of incoming political fire over the large-scale theft under his watch as governor in a state that has long prided itself on good governance.
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More than 90 people — most from Minnesota's large Somali community — have been charged since 2022 in what has been described as the nation's largest COVID-era scheme. How much money has been stolen through alleged money laundering operations involving fraudulent meal and housing programs, daycare centers and Medicaid services is still being tabulated. But the U.S. attorney in Minnesota said the scope of the fraud could exceed $1 billion and rise to as high as $9 billion.
Prosecutors said some of the dozens that have already pleaded guilty in the case used the money to buy luxury cars, real estate, jewelry and international vacations, with some of the funds also sent overseas and potentially into the hands of Islamic terrorists.
"This is on my watch, I am accountable for this and, more importantly, I am the one that will fix it," Walz told reporters last month, taking responsibility for the scandal.
The governor took actions to stop some of the suspected fraudulent payments and ordered an outside audit of Medicaid billing in the state.
But Trump repeatedly blasted Walz as "incompetent" and, during Thanksgiving, used a slur for developmentally disabled people to describe the governor.
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The scandal, which grabbed plenty of national attention over the past two months, went viral the past two weeks after the release of a video by 23-year-old YouTube content creator Nick Shirley, who alleged widespread fraud at Somali-run daycare centers. Days later, the Trump administration froze federal childcare funding to Minnesota.
Sen. Amy Klobuchar met Sunday with Gov. Tim Walz ahead of his announcement Monday that he would drop his 2026 re-election bid, according to sources. (Bloomberg/Getty)
And sources told FOX 9 in Minnesota that Klobuchar is considering making a gubernatorial bid but has yet to make any final decision.
Walz met Sunday with Klobuchar to discuss his decision to drop his re-election bid, a source familiar confirmed to Fox News.
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Asked about his conversation with the senator, Walz told reporters, "I spoke with a lot of key allies. … And Sen. Klobuchar was one of those conversations."
And Walz, confident a Democrat will succeed him in November's election, said, "I think that we have a very deep bench."
Fox News' Patrick McGovern contributed to this report
Paul Steinhauser is a politics reporter based in the swing state of New Hampshire. He covers the campaign trail from coast to coast."
https://www.foxnews.com/politics/walz-refuses-quit-after-dropping-re-election-bid-amid-minnesota-fraud-firestorm-over-my-dead-body