Original Story by The Post Millennial

January 5, 2026

Minnesota Governor Tim Walz is expected to announce his withdrawal from the 2026 re-election campaign amid increasing scrutiny over fraud allegations, particularly concerning Medicaid programs and Covid-related relief efforts. This decision follows a meeting with Senator Amy Klobuchar and comes in the wake of intensified criticism from Republican lawmakers, who have called for his resignation due to claims of significant fraudulent activity. Federal action has also been triggered, with the SBA suspending thousands of loans linked to suspected fraud in Minnesota. As Walz prepares to address his political future, the implications of these controversies could reshape Minnesota’s political landscape moving forward.

• Walz took office in 2019 and has faced allegations of inadequate responses to fraud in Minnesota’s Medicaid-related programs, drawing national attention and criticism from political opponents.
• Republican state legislators issued a joint statement urging Walz to resign, citing that at least half of the $18 billion paid through Minnesota’s Medicaid waiver programs since 2018 could be fraudulent, according to First Assistant US Attorney Joe Thompson.
• The SBA identified widespread suspected fraud involving 6,900 Minnesota borrowers connected to Paycheck Protection Program (PPP) loans, totaling approximately $400 million.
• Following an exposé by independent reporter Nick Shirley, which highlighted alleged fraud at daycare centers operated by Somali communities, the Trump administration moved to halt certain federal funding to Minnesota related to childcare.
• Prior fraud cases involving the Somali community have resulted in multiple convictions, where funds were allocated for feeding children during Covid without services being provided.