Minnesota Governor Tim Walz Drops Reelection Bid Amid Welfare-Fraud Scandal, Trump Says ‘No One Is Above The Law’

by | Jan 6, 2026 | General

Minnesota Governor Tim Walz has decided not to seek a third term in the upcoming election amid the welfare-fraud scandal.

Walz Steps Aside, Cites Duty to Minnesota

Walz, 61, announced his decision on Monday at the state capitol in St. Paul. “I can’t give a political campaign my all,” Walz stated. “Every minute that 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 want to prey on our differences.”

He also posted the same on X.

Walz’s decision to step back from the reelection race comes at a time when the welfare-fraud scandal in Minnesota has been a hot topic, particularly after right-wing YouTuber Nick Shirley, in late December, busted the alleged fraud by visiting several child care centers in Minnesota, mainly run by Somali immigrants. His video on YouTube garnered millions of views. The scandal has been a recurring issue, with Walz being criticized for his handling of the situation.

President Donald Trump reacted to the news on his Truth Social and stated that Walz has been caught ‘redhanded.’ He added, “No one is above the law.”

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Fraud Crackdown Draws Federal Backlash

Earlier, Walz had said that Minnesota is aggressively cracking down on fraud through specialized enforcement units, audits, and tighter oversight, while blaming federal failures under the Trump administration for allowing pandemic-era fraud to go unchecked. He added that former FBI agent and judge O’Malley will lead statewide fraud detection efforts.

In December, the Small Business Administration (SBA) halted all grant funding to Minnesota due to what it termed as one of the largest state-level Paycheck Protection Program fraud cases in U.S. history. SBA Administrator Kelly Loeffler attributed the scale of the fraud to oversight failures under Walz.

Walz also faced criticism for illegally issuing Commercial Driving Licenses (CDLs), with Transportation Secretary Sean Duffy giving him a 30-day ultimatum to rectify the situation or risk losing $30 million in federal funding.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.