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.”

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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.

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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 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.

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.

WASHINGTON — Lawmakers are returning to Washington this week confronting the fallout from the stunning capture of Venezuelan President Nicolás Maduro — and familiar complaints about the Trump administration deciding to bypass Congress on military operations that have led to this moment.

Democratic leaders are demanding the administration immediately brief Congress. Republican leaders indicated over the weekend those plans are being scheduled, but some lawmakers expressed frustration Sunday that the details have been slow to arrive.

President Trump told the nation Saturday that the United States intends to “run” Venezuela and take control over the country’s oil operations now that Maduro has been captured and brought to New York to stand trial in a criminal case centered on narco-terrorism charges.

The administration did not brief Congress ahead of the actions, leaving Democrats and some Republicans expressing public frustration with the decision to sideline Congress.

“Congress should have been informed about the operation earlier and needs to be involved as this situation evolves,” Sen. Susan Collins (R-Maine) said in a social media post Saturday.

Appearing on the Sunday news shows, Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, both of New York, ticked through a growing list of unknowns — and laid out plans for their party to try and reassert Congress’ authority over acts of war.

“The problem here is that there are so many unanswered questions,” Schumer said on ABC’s “This Week.” “How long do they intend to be there? How many troops do we need after one day? After one week? After one year? How much is it going to cost and what are the boundaries?”

Jeffries told NBC’s “Meet the Press” that he was worried about Trump running Venezuela, saying he has “done a terrible job running the United States of America” and should be focused on the job at home.

In the coming days, Jeffries said Democrats will prioritize legislative action to try and put a check on the administration, “to ensure that no further military steps occur absent explicit congressional approval.”

As discussions over Venezuela loom, lawmakers also face major decisions on how to address rising costs of healthcare, prevent another government shutdown and deal with the Trump administration’s handling of the Epstein files.

Much of the unfinished business reflects a Congress that opted to punt some of its toughest and most politically divisive decisions into the new year, a move that could slow negotiations as lawmakers may be reluctant to give the other side high-profile policy wins in the lead-up to the 2026 midterm elections.

First and foremost, Congress faces the monumental task of averting yet another government shutdown — just two months after the longest shutdown in U.S. history ended. Lawmakers have until Jan. 30 to pass spending bills needed to keep the federal government open. Both chambers are scheduled to be in session for three weeks before the shutdown deadline — with the House slated to be out of session the week immediately before.

Lawmakers were able to resolve key funding disputes late last year, including funding for Supplemental Nutrition Assistance Program benefits, also known as food stamps, and other government programs. But disagreements over healthcare spending remain a major sticking point in budget negotiations, intensified now that millions of Americans are facing higher healthcare costs after lawmakers allowed Affordable Care Act tax credits to expire on Thursday.

“We can still find a solution to this,” said Rep. Kevin Kiley (R-Rocklin), who has proposed legislation to extend the tax credits for two years. “We need to come up with ways to make people whole. That needs to be a top priority as soon as we get back.”

Despite that urgency, Republican efforts to be the author of broad healthcare reforms have gotten little traction.

Underscoring the political pressure over the issue, four moderate House Republicans late last year defied party leadership and joined House Democrats to force a floor vote on a three-year extension of the subsidies. That vote is expected to take place in the coming weeks. Even if the House effort succeeds, its prospects remain dim in the Senate, where Republicans last month blocked a three-year extension.

Meanwhile, President Trump is proposing giving more money directly to people for their healthcare, rather than to insurance companies. A White House official said the administration is also pursuing reforms to lower the cost of prescription drugs.

Trump said last month that he plans to summon a group of healthcare executives to Washington early in the year to pressure them to lower costs.

“I’m going to call in the insurance companies that are making so much money, and they have to make less, a lot less,” Trump said during an Oval Office announcement. “I’m going to see if they get their price down, to put it very bluntly. And I think that is a very big statement.”

There is an expectation that Trump’s increasing hostility to insurance companies will play a role in any Republican healthcare reform proposal. If Congress does not act, the president is expected to leverage the “bully pulpit” to pressure drug and insurance companies to lower healthcare prices for consumers through executive action, said Nick Iarossi, a Trump fundraiser.

“The president is locked in on the affordability message and I believe anything he can accomplish unilaterally without Congress he will do to provide relief to consumers,” Iarossi said.

While lawmakers negotiate government funding and healthcare policy, the continuing Epstein saga is expected to take up significant bandwidth.

Democrats and a few Republicans have been unhappy with the Department of Justice’s decision to heavily redact or withhold documents from a legally mandated release of files related to its investigation of Jeffrey Epstein, a convicted sex offender who died in a Manhattan jail awaiting trial on sex trafficking charges.

Some are weighing options for holding Atty. Gen. Pam Bondi accountable.

Rep. Ro Khanna (D-Fremont), who co-sponsored the law that mandated the release with Rep. Thomas Massie (R-Ky.), said he and Massie will bring contempt charges against Bondi in an attempt to force her to comply with the law.

“The survivors and the public demand transparency and justice,” Khanna said in a statement.

Under a law passed by Congress and signed by Trump, the Justice Department was required to release all Epstein files by Dec. 19, and released about 100,000 pages on that day. In the days that followed, the Justice Department said more than 5.2 million documents have been discovered and need to be reviewed.

“We have lawyers working around the clock to review and make the legally required redactions to protect victims, and we will release the documents as soon as possible,” the Justice Department said in a social media post on Dec. 24. “Due to the mass volume of material, this process may take a few more weeks.”

Rep. Robert Garcia, the top Democrat on the House Oversight Committee, told MS NOW last week that pressure to address the matter will come to a head in the new year when lawmakers are back at work.

“When we get back to Congress here in this next week, we’re going to find out really quick if Republicans are serious about actually putting away and taking on pedophiles and some of the worst people and traffickers in modern history, or if they’re going to bend the knee to Donald Trump,” said Garcia, of Long Beach.

President Donald Trump said the U.S. is now in control of Venezuela following the arrest of longtime leader Nicolás Maduro, outlining a plan to run the country, rebuild its economy and delay elections until what he described as a recovery is underway.

Trump made the remarks during a gaggle with reporters as questions mounted about who is governing Venezuela after a U.S. military operation led to Maduro’s arrest early Saturday.

“Don’t ask me who’s in charge because I’ll give you an answer, and it’ll be very controversial,” Trump told a reporter.

He was then asked to clarify, to which Trump replied, “It means we’re in charge.”

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Trump was also asked whether he had spoken directly with Venezuela’s newly sworn-in Vice President Delcy Rodríguez amid uncertainty about how the new government is functioning and what role the U.S. is playing.

While Trump said he has not personally spoken with Rodríguez, he suggested coordination is already underway between U.S. officials and the new leadership.

During the gaggle, Trump repeatedly portrayed Venezuela as a failed state that cannot immediately transition to democratic rule, arguing the country’s infrastructure and economy had been devastated by years of mismanagement.

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He compared Venezuela’s collapse to what he claimed would have happened to the U.S. had he lost the election, using the comparison to underscore his argument for intervention.

“We have to do one thing in Venezuela. Bring it back. It’s a dead country right now,” Trump said. “It’s a country that, frankly, we would have been if I had lost the election. We would have been Venezuela on steroids.”

Trump said rebuilding Venezuela will center on restoring its oil industry, which he said had been stripped from the U.S. under previous governments, leaving infrastructure decayed and production crippled.

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He stressed that American oil companies – not U.S. taxpayers – will finance the reconstruction, while the U.S. oversees the broader recovery.

“The oil companies are going to go in and rebuild this system. They’re going to spend billions of dollars, and they’re going to take the oil out of the ground, and we’re taking back what they sell,” Trump said. “Remember, they stole our property. It was the greatest theft in the history of America. Nobody has ever stolen our property like they have. They took our oil away from us. They took the infrastructure away. And all that infrastructure is rotted and decayed.”

Trump said elections will not take place until the country is stabilized, arguing that rushing a vote in a collapsed state would repeat past failures.

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He said the U.S. will manage Venezuela’s recovery process, including addressing inflation, revenue loss and infrastructure collapse.

“We’re going to run everything,” Trump said. “We’re going to run it, fix it. We’ll have elections at the right time.”

When asked whether the operation in Venezuela was motivated by oil interests or amounted to regime change, Trump rejected both characterizations and instead cast the effort as part of a broader security doctrine.

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He tied the intervention to long-standing U.S. policy in the Western Hemisphere, invoking historical precedent.

“It’s about peace on Earth,” Trump said. “You gotta have peace, it’s our hemisphere. The Monroe Doctrine was very important when it was done.”

Trump went on to criticize past presidents for failing to enforce that doctrine, arguing his administration has restored it as a guiding principle.

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“And other presidents, a lot of them, they lost sight of it,” Trump added. “I didn’t. I didn’t lose sight. But it really is. It’s peace on Earth.”

Trump said the U.S. role in Venezuela will ultimately focus on rebuilding the country while caring for Venezuelans displaced by years of economic collapse.

He said that includes Venezuelans currently living in the U.S., many of whom he said were forced to flee.

“We’re gonna cherish a country,” Trump said. “We’re going to take care of, more importantly, of the people, including Venezuelans that are living in our country that were forced to leave their country, and they’re going to be taken very good care of.”

Trump made clear the comments on Venezuela were part of a broader foreign policy outlook, using the gaggle to issue warnings about instability elsewhere in the Western Hemisphere and overseas. He suggested the U.S. is prepared to respond forcefully to threats he said could endanger American security interests.

Trump singled out Colombia, describing the country as a growing security concern and accusing its leadership of enabling large-scale drug trafficking into the U.S.

“Colombia’s very sick too, run by a sick man who likes making cocaine and selling it to the United States, and he’s not going to be doing it very long,” Trump said.

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When asked whether that meant U.S. action, Trump replied, “It sounds good to me.”

Trump also addressed ongoing protests in Iran, warning that the U.S. is closely monitoring the situation and would respond if the Iranian government uses violence against demonstrators.

“We’re watching it very closely,” he said. “If they start killing people like they have in the past, I think they’re going to get hit very hard by the United States.”