BREAKING: Tim Walz Drops Re-Election Bid Amid Sprawling Somali Fraud Scandal

Minnesota Gov. Tim Walz said Monday he is stepping aside rather than run for a third term, a decision that comes as scrutiny mounts over a massive Somali daycare fraud scandal in the state.

Walz, who was the Democratic vice presidential nominee in 2024, spent the weekend weighing his future with friends and advisers, according to two senior Democrats familiar with the discussions. He also met Sunday with Sen. Amy Klobuchar as the longtime lawmaker weighs a potential run for governor, two sources said.

In a statement, Walz said he had “decided to step out of the race and let others worry about the election while I focus on the work.”

“Minnesota has to come first – always,” Walz wrote moments ago on X. “Today, I’m proud of the work we’ve done to make Minnesota the best place to live and raise kids.”

His announcement lands as a widening federal investigation into alleged child care fraud continues to roil Minnesota politics. While Walz has not been accused of any wrongdoing, Republicans have pinned blame on his administration and Democratic leaders for what they describe as years of unchecked abuse of taxpayer-funded programs.

State officials face a Jan. 9 deadline to turn over information to the Trump administration regarding Somali child care providers and parents receiving federal funds.

Walz is scheduled to address the decision publicly at a news conference set for 11 a.m. CT Monday in St. Paul.

Klobuchar, elected to a fourth Senate term in 2024, is a former prosecutor and a member of Senate leadership. She has privately expressed interest over the years in returning home to serve as governor and previously ran for the Democratic presidential nomination in 2020.