(NewsNation) — Minnesota Gov. Tim Walz ended his reelection campaign Monday amid mounting scrutiny over allegations of social aid fraud at day care centers in the state.
Speaking to reporters, Walz said he has taken steps in office to address fraud and criticized the Trump administration for politicizing the issue and withholding funds.
“A single tax-paying dollar wasted on fraud should be intolerable,” Walz said.
He also took aim at Republicans in Minnesota for playing politics on the issue, before expressing gratitude for the career professionals in the federal government who have been working to address fraud.
Walz said he believes he would be successful in another term, but after speaking with family and his team, he said he cannot give a political campaign the attention it requires.
“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,” the statement read. “So I’ve decided to step out of the race and let others worry about the election while I focus on the work.”
Sources close to Sen. Amy Klobuchar, D-Minn., said she has received outreach asking her to run.
“She is considering it, but has not made a final decision,” the source said.
In Walz’s statement, he said he had no regrets about his decision to drop out of the race.
“After all, I didn’t run for this job so I could have this job. I ran for this job so I could do this job. Minnesota faces an enormous challenge this year. And I refuse to spend even one minute of 2026 doing anything other than rising to meet the moment. Minnesota has to come first — always,” the statement continued.
Governor since 2019, Walz was running for reelection after a failed Democratic run for vice president in the 2024 election.
Minnesota fraud investigation
The federal government is investigating a potential social services aid fraud scheme in which hundreds of millions of dollars intended for a federally funded nutrition program were allegedly used instead for lavish purchases.
Last week, the Department of Health and Human Services froze all federal funding to the state’s child care providers.
In late November, hundreds of Minnesota Department of Human Services employees accused Walz on social media of ignoring early warnings about the fraud and retaliating against whistleblowers.
NewsNation’s Steph Whiteside, Anna Kutz and Rich McHugh contributed to this report.