Speculation is mounting over the political future of Minnesota Governor Tim Walz, with rumours suggesting he may abandon his campaign for re-election in 2026. The Democrat is under intense pressure due to a sprawling federal fraud investigation and relentless criticism from President Donald Trump.
Pressure Mounts as News Conference Fuels Speculation
According to reports from Minnesota Public Radio, Governor Walz scheduled a news conference for Monday 5 January 2026 without providing an agenda. This unusual move has led to widespread conjecture that he could be preparing to withdraw from the upcoming gubernatorial race. A political insider told Fox News 9 Minneapolis that Walz is likely to remove himself from the contest, noting he met with Senator Amy Klobuchar over the weekend to discuss the decision.
A spokesperson for Walz's re-election campaign did not immediately respond to a request for comment from The Independent. The governor, a former high school teacher first elected in 2018, gained national prominence as former Vice President Kamala Harris's running mate in the 2024 presidential election.
The $9 Billion Fraud Scandal at the Heart of the Crisis
The core of the controversy stems from a massive federal investigation into Minnesota's social services programs. Federal prosecutors announced this month they are examining "suspicious billing practices" in over a dozen Medicaid-funded schemes. Preliminary assessments, reported by The New York Times, indicate that more than $9 billion in taxpayer money intended for low-income families may have been stolen.
This investigation has its roots in 2022, when dozens were charged with stealing funds meant to feed children during the Covid-19 pandemic. Scrutiny intensified in December after a conservative activist posted a video alleging widespread fraud in day care facilities run by Somali immigrants. To date, about 60 people have been convicted in connection to the probe.
While Walz has praised the latest federal charges and stated Minnesota is overhauling its social services system, his response has drawn fierce criticism.
Trump's Attacks and the Political Fallout
President Donald Trump has seized on the scandal, launching repeated personal and political attacks on the governor. In a New Year's Eve post on Truth Social, Trump described Walz as "a Crooked Governor." His administration has also paused federal child care funds to the state.
Walz hit back on social media platform X in December, writing: "We've spent years cracking down on fraudsters. It's a serious issue - but this has been his plan all along. He's politicizing the issue to defund programs that help Minnesotans."
The conflict escalated further when Trump reposted baseless conspiracy theories, including one falsely claiming Walz had state Representative Melissa Hortman killed. Walz responded on 3 January, calling it "Dangerous, depraved behavior from the sitting president of the United States."
The race for the governor's mansion is already attracting a crowded field of candidates. Among them is Mike Lindell, the MyPillow founder and a staunch Trump ally, signalling that the contest will be a major political battleground.
