Politics
Fraud fallout forces Democratic Gov Tim Walz to abandon Minnesota re-election bid
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Gov. Tim Walz of Minnesota announced on Monday that he’s dropping his bid for an unprecedented third term as governor amid stinging criticism of the unsuccessful 2024 Democratic vice presidential nominee’s handling of his state’s massive welfare assistance fraud scandal.
“As I reflected on this moment with my family and my team over the holidays, I came to the conclusion that I can’t give a political campaign my all,” Walz wrote in a statement. “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 this race and let others worry about the election while I focus on the work in front of me for the next year,” the governor added in his statement and in front of cameras a couple of hours later. The governor didn’t take any questions but said on Tuesday he would return to “take all your questions.”
And pointing to his efforts to deal with the growing fraud scandal, Walz charged, “The political gamesmanship we’re seeing from Republicans is only making that fight harder to win.”
GOP LAWMAKER UNVEILS WALZ ACT AFTER BILLIONS LOST IN MINNESOTA FRAUD SCANDAL
Minnesota Gov. Tim Walz, at a news conference at the Minnesota State Capitol on Monday, Jan. 5, 2026, in St. Paul, Minn., announces he’s dropping his 2026 re-election bid. (Kerem Yücel/Minnesota Public Radio via AP)
Walz launched his bid for a third four-year term as Minnesota governor in September, but in recent weeks has been facing a barrage of incoming political fire from President Donald Trump and Republicans, and some Democrats, over the large-scale theft in a state that has long prided itself on good governance.
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.
MEDIA ‘COMPLICITY’ BLAMED AS FEDS SAY MINNESOTA FRAUD CRISIS COULD REACH $9B: ‘SHOWN THEIR TRUE COLORS’
Minnesota Gov. Tim Walz speaks at a press conference. (Christopher Mark Juhn/Anadolu via Getty Images)
Prosecutors said that 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, as he took 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.
The sun shines on the Minnesota State Capitol. (Steve Karnowski/Associated Press)
The scandal, which grabbed plenty of national attention over the past two months, went viral the past few weeks following 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 child-care funding to Minnesota.
Reactions quickly began to pour in following the Walz announcement.
“Good riddance,” Republican House Majority Whip Tom Emmer, who represents Minnesota’s 6th Congressional District, said in a statement.
Republican Governors Association Communications Director Courtney Alexander charged in a statement that “Walz’s failed leadership is emblematic of Minnesota Democrats’ agenda and whoever Democrats choose to replace Walz with at the top of the ticket will need to defend years of mismanagement and misplaced priorities.”
Minnesota Republican state Rep. Kristin Robbins, a candidate for governor, released a statement saying, “Tim Walz and his staggering fraud could not outrun our investigations and the momentum we have in this race.”
“He knows he will lose in November, and would rather give up than take responsibility. Anyone Walz handpicks to run for governor will own the fraud and failures of this administration. Our campaign is building the coalition necessary to stop the fraud, protect our kids, and make Minnesota prosper. As Governor, I will dismantle the years of fraud Democrats allowed and ensure our tax dollars work for Minnesotans.”
Minnesota House Speaker Lisa Demuth, another leading Republican gubernatorial candidate, took to social media to argue, “If Democrats think they can sweep Minnesota’s fraud scandal away by swapping out Tim Walz, they are wrong.”
“We need transformational change across state government that only comes with a Republican governor. I will deliver that no matter who the Democrats decide to run,” Demuth emphasized.
Joe Teirab, a former federal prosecutor who worked on the Feeding our Future fraud case that was a key part of the unfolding fraud scandal, told Fox News Digital that Walz “allowed fraudsters to steal billions from taxpayers, and did nothing.”
“The only fraud scheme Walz has chosen to end is his political career,” Teirab said.
But Democratic Governors Association (DGA) chair Gov. Andy Beshear of Kentucky said in a statement, “No matter who decides to run or how much national Republicans want to spend, the DGA remains very confident Minnesotans will elect another strong Democratic governor this November.”
And Besehar praised Walz, a former DGA chair, as “a true leader who has delivered results that will make life better for Minnesota workers and families for years to come.”
Democratic National Committee chair Ken Martin, a former longtime state party chair in Minnesota, said the decision by Walz “is entirely consistent with who Tim is. Tim has always believed that leadership isn’t about preserving your own power — it’s about using it to make a difference for as many people as possible.”
“In the months ahead, Tim will continue doing what he’s done throughout his career: standing up to Donald Trump, defending Minnesota’s values, and fighting for working people,” Martin predicted.
Walz met Sunday with Democratic Sen. Amy Klobuchar of Minnesota to discuss his decision to drop his re-election bid, a source familiar confirmed to Fox News’ Alexis McAdams.
Word of their meeting comes amid speculation that Klobuchar, a former Hennepin County attorney who’s been elected and re-elected four times to the U.S. Senate, may now run to succeed Walz.
Walz said he was “absolutely confident” that Democrats would “hold this seat come November.”
And the governor touted that if he had continued to seek re-election, “I have every confidence that, if I gave it my all, we would win that race.”
In the nation’s capital, the Republican chairman of the House Committee on Oversight and Government Reform, which is investigating Minnesota’s fraud scandal, took aim at Walz.
“Though Tim Walz is not running for governor again, he cannot run from accountability,” Rep. James Comer of Kentucky charged in a statement. “The House Oversight Committee demands that he appear for a public hearing on February 10 to expose this fraud and begin the process of accountability. The American people deserve answers, and they deserve them now.”
The statement was echoed by the White House, with spokeswoman Abigail Jackson saying,”Tim should know, that dropping out of the race won’t shield him from the consequences of his actions.”
But Walz, firing back, claimed that “Donald Trump and his allies – in Washington, in St. Paul, and online – want to make our state a colder, meaner place. They want to poison our people against each other by attacking our neighbors. And, ultimately, they want to take away much of what makes Minnesota the best place in America to raise a family.”
“They’ve already begun by taking our tax dollars that were meant to help families afford child care. And they have no intention of stopping there,” the governor argued.
The 61-year-old Walz was raised in rural Nebraska and enlisted in the Army National Guard in 1981, soon after graduating from high school.
Walz returned to Nebraska to attend Chadron State College, where he graduated in 1989 with a degree in social science education.
He taught English and American History in China for one year through a program at Harvard University before being hired in 1990 as a high school teacher and football and basketball coach in Nebraska. Six years later, he moved to Mankato, Minnesota, to teach geography at Mankato West High.
Walz was deployed to Italy to support Operation Enduring Freedom in 2003 before retiring two years later from the National Guard.
He was elected to the House in 2006 and re-elected five times, representing Minnesota’s 1st Congressional District, a mostly rural district covering the southern part of the state that includes a number of midsize cities. During his last two years on Capitol Hill, he served as ranking member of the House Veterans Affairs Committee.
Walz won election as governor in 2018 and re-election four years later.
Former Vice President Kamala Harris and Minnesota Gov. Tim Walz walk out on stage together during a campaign event on Aug. 6, 2024, in Philadelphia, Pennsylvania. (Andrew Harnik/Getty Images)
But Walz was unknown to many Americans when then-Vice President Kamala Harris chose the Minnesota governor as her running mate in the summer of 2024, soon after she replaced then-President Joe Biden as the Democrats’ presidential nominee.
Walz, during his three months as running mate, visually and vocally embraced the traditional role of political attack dog that has long been associated with vice presidential nominees.
But Harris and Walz fell short, losing the November 2024 election to Trump and now-Vice President JD Vance, as the Democratic Party ticket was swept in all seven crucial battleground states.
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Pundits considered Walz a possible contender for the Democratic Party’s 2028 presidential nomination.
But Walz said in multiple interviews last summer that he had no interest in seeking the presidency.
And the ongoing fraud scandal and his decision to end his gubernatorial re-election bid seems to put an end to Walz’ recent tenure in national politics.
Politics
Federal judge blocks Trump administration from enforcing mail-in voting rules in executive order
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A federal judge in Washington state on Friday blocked the Trump administration from enforcing key parts of an executive order that sought to change how states administer federal elections, ruling the president lacked authority to apply those provisions to Washington and Oregon.
U.S. District Judge John Chun held that several provisions of Executive Order 14248 violated the separation of powers and exceeded the president’s authority.
“As stated by the Supreme Court, although the Constitution vests the executive power in the President, ‘[i]n the framework of our Constitution, the President’s power to see that the laws are faithfully executed refutes the idea that he is to be a lawmaker,’” Chun wrote in his 75-page ruling.
FEDERAL APPEALS COURT RULES AGAINST TRUMP’S BIRTHRIGHT CITIZENSHIP EXECUTIVE ORDER
Residents drop mail-in ballots in an official ballot box outside the Tippecanoe branch library on Oct. 20, 2020 in Milwaukee, Wisconsin. (Scott Olson/Getty Images)
White House spokeswoman Abigail Jackson told Fox News Digital in a statement: “President Trump cares deeply about the integrity of our elections and his executive order takes lawful actions to ensure election security. This is not the final say on the matter and the Administration expects ultimate victory on the issue.”
Washington and Oregon filed a lawsuit in April contending the executive order signed by President Donald Trump in March violated the Constitution by attempting to set rules for how states conduct elections, including ballot counting, voter registration and voting equipment.
DOJ TARGETS NONCITIZENS ON VOTER ROLLS AS PART OF TRUMP ELECTION INTEGRITY PUSH
“Today’s ruling is a huge victory for voters in Washington and Oregon, and for the rule of law,” Washington Attorney General Nick Brown said in response to the Jan. 9 ruling, according to The Associated Press. “The court enforced the long-standing constitutional rule that only States and Congress can regulate elections, not the Election Denier-in-Chief.”
President Donald Trump speaks during a breakfast with Senate and House Republicans at the White House, Nov. 5, 2025. (AP Photo/Evan Vucci)
Executive Order 14248 directed federal agencies to require documentary proof of citizenship on federal voter registration forms and sought to require that absentee and mail-in ballots be received by Election Day in order to be counted.
The order also instructed the attorney general to take enforcement action against states that include such ballots in their final vote tallies if they arrive after that deadline.
“We oppose requirements that suppress eligible voters and will continue to advocate for inclusive and equitable access to registration while protecting the integrity of the process. The U.S. Constitution guarantees that all qualified voters have a constitutionally protected right to vote and to have their votes counted,” said Washington Secretary of State Steve Hobbs in a statement issued when the lawsuit was filed last year.
Voting booths are pictured on Election Day. (Paul Richards/AFP via Getty Images)
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“We will work with the Washington Attorney General’s Office to defend our constitutional authority and ensure Washington’s elections remain secure, fair, and accessible,” Hobbs added.
Chun noted in his ruling that Washington and Oregon do not certify election results on Election Day, a practice shared by every U.S. state and territory, which allows them to count mail-in ballots received after Election Day as long as the ballots were postmarked on or before that day and arrived before certification under state law.
Politics
Deadly ICE shooting in Minnesota, affordability stir up California gubernatorial forums
Just days after the fatal shooting of a Minnesota woman by a federal immigration agent, the Trump administration’s immigration policy was a top focus of California gubernatorial candidates at two forums Saturday in Southern California.
The death of Renee Nicole Good, a 37-year-old mother of three, inflamed the nation’s deep political divide and led to widespread protests in Los Angeles and across the country about President Trump’s combative immigration policies.
Former Assembly Majority Leader Ian Calderon, speaking at a labor forum featuring Democratic candidates in Los Angeles, said that federal agents aren’t above the law.
“You come into our state and you break one of our f— … laws, you’re going to be criminally charged. That’s it,” he said.
Federal officials said the deadly shooting was an act of self-defense.
Rep. Eric Swalwell (D-Dublin) noted that the president of the labor union that organized the candidate forum, David Huerta, was injured and arrested during the Trump administration’s raids on undocumented people in Los Angeles in June.
“Ms. Good should be alive today. David, that could have been you, the way they’re conducting themselves,” he said to Huerta, who was moderating the event. “You’re now lucky if all they did was drag you by the hair or throw you in an unmarked van, or deport a 6-year-old U.S. citizen battling stage 4 cancer.”
Roughly 40 miles south at a separate candidate forum featuring the top two Republicans in the race, GOP candidate and Riverside County Sheriff Chad Bianco said politicians who support so-called “sanctuary state” policies should be voted out of office.
“I wish it was the 1960s, ‘70s, and ‘80s — we’d take them behind the shed and beat the s— out of them,” he said.
“We’re in a church!” an audience member was heard yelling during a livestream of the event.
California Democratic leaders in 2017 passed a landmark “sanctuary state” law that limits cooperation between local and federal immigration officers, a policy that was a reaction to the first Trump administration’s efforts to ramp up deportations.
After the campaign to replace termed-out Gov. Gavin Newsom was largely obscured last year by natural disasters, immigration raids and the special election to redraw California’s congressional districts, the 2026 governor’s race is now in the spotlight.
Eight Democratic candidates appeared at a forum sponsored by SEIU United Service Workers West, which represents more than 45,000 janitors, security officers, airport service employees and other workers in California.
Many of the union’s members are immigrants, and a number of the candidates referred to their familial roots as they addressed the audience of about 250 people — with an additional 8,000 watching online.
“As the son of immigrants, thank you for everything you did for your children, your grandchildren, to give them that chance,” former U.S. Health and Human Services Secretary Xavier Becerra told two airport workers who asked the candidates questions about cuts to state services for immigrants.
“I will make sure you have the right to access the doctor you and your family need. I will make sure you have a right to have a home that will keep you safe and off the streets. I will make sure that I treat you the way I would treat my parents, because you worked hard the way they did.”
The Democrats broadly agreed on most of the pressing issues facing California, so they tried to differentiate themselves based on their records and their priorities.
Candidates for California’s next governor including Tony Thurmond, speaking at left, participate in the 2026 Gubernatorial Candidate Forum in Los Angeles on Saturday.
(Christina House/Los Angeles Times)
“I firmly believe that your campaign says something about who you will be when you lead. The fact that I don’t take corporate contributions is a point of pride for me, but it’s also my chance to tell you something about who I am and who I will fight for,” said former Rep. Katie Porter.
“Look, we’ve had celebrity governors. We’ve had governors who are kids of other governors, and we’ve had governors who look hot with slicked back hair and barn jackets. You know what? We haven’t had a governor in a skirt. I think it’s just about … time.”
Former Los Angeles Mayor Antonio Villaraigosa, seated next to Porter, deadpanned, “If you vote for me, I’ll wear a skirt, I promise.”
Villaraigosa frequently spoke about his roots in the labor movement, including a farmworker boycott when he was 15 years old.
“I’ve been fighting for immigrants my entire life. I have fought for you the entire time I’ve been in public life,” he said. “I know [you] are doing the work, working in our buildings, working at the airport, working at the stadiums. I’ve talked to you. I’ve worked with you. I’ve fought for you my entire life. I’m not a Johnny-come-lately to this unit.”
The candidates were not asked about a proposed ballot measure to tax the assets of billionaires that one of SEIU-USWW’s sister unions is trying to put on the November ballot. The controversial proposal has divided Democrats and prompted some of the state’s wealthiest residents to move out of the state, or at least threaten to do so.
But several of the candidates talked about closing tax loopholes and making sure the wealthy and businesses pay their fair share of taxes.
“We’re going to hold corporations and billionaires accountable. We’re going to be sure that we are returning power to the workers who know how to grow this economy,” said former state Controller Betty Yee.
State Supt. of Public Instruction Tony Thurmond highlighted his proposal to tax billionaires to fund affordable housing, healthcare and education.
“And then I’m going to give you, everyone in this room and California working people, a tax credit so you have more money in your pocket, a couple hundred dollars a month, every month, for the rising cost of gas and groceries,” he said.
Billionaire hedge fund founder Tom Steyer said closing corporate tax loopholes would result in $15 billion to $20 billion in new annual state revenue that he would spend on education and healthcare programs.
“When we look at where we’re going, it’s not about caring, because everyone on this stage cares. It’s not about values. It’s about results,” he said, pointing to his backing of successful ballot measures to close a corporate tax loophole, raise tobacco taxes, and stop oil-industry-backed efforts to roll back environmental law.
“I have beaten these special interests, every single time with the SEIU,” he said. “We’ve done it. We’ve been winning. We need to keep fighting together. We need to keep winning together.”
Republican gubernatorial candidates were not invited to the labor gathering. But two of the state’s top GOP contenders were among the five candidates who appeared Saturday afternoon at a “Patriots for Freedom” gubernatorial forum at Calvary Chapel WestGrove in Orange County. Immigration, federal enforcement and homelessness were also among the hot topics there.
Days after Bianco met with unhoused people on Skid Row in downtown Los Angeles and Newsom touted a 9% decrease in the number of unsheltered homeless people during his final state of the state address, Bianco said that he would make it a “crime” for anyone to utter the word “homeless,” arguing that those on the street are suffering from drug- and alcohol-induced psychosis, not a lack of shelter.
Former Fox News commentator Steve Hilton criticized the “attacks on our law enforcement offices, on our ICE agents who are doing their job protecting our country.”
“We are sick of it,” he said at the Garden Grove church while he also questioned the state’s decision to spend billions of dollars for healthcare for low-income undocumented individuals. State Democrats voted last year to halt the enrollment of additional undocumented adults in the state’s Medi-Cal program starting this year.
Politics
Video: Protests Against ICE in Minneapolis Continue Into Friday Night
new video loaded: Protests Against ICE in Minneapolis Continue Into Friday Night
transcript
transcript
Protests Against ICE in Minneapolis Continue Into Friday Night
Hundreds of protesters marched through downtown Minneapolis on Friday night. They stopped at several hotels along the way to blast music, bang drums and play instruments to try to disrupt the sleep of immigration agents who might be staying there. Mayor Jacob Frey of Minneapolis said there were 29 arrests but that it was mostly a “peaceful protest.”
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The vast majority of people have done this right. We are so deeply appreciative of them. But we have seen a few incidents last night. Those incidents are being reviewed, but we wanted to again give the overarching theme of what we’re seeing, which is peaceful protest. And we wanted to say when that doesn’t happen, of course, there are consequences. We are a safe city. We will not counter Donald Trump’s chaos with our own brand of chaos here. We in Minneapolis are going to do this right.
By McKinnon de Kuyper
January 10, 2026
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