Tipsheet

Report: Tim Walz to Announce He's Dropping Out of the Race for Governor

Amy Curtis
Amy Curtis  |  January 05, 2026 7:30 AM

December was a rough month for Minnesota Governor Tim Walz, and it was all self-inflicted. At the beginning of the month, Walz was outed by a group of Minnesota state employees who said Walz not only knew about the massive Somali community fraud in the Feeding Our Future Program, but also the state's housing, Medicare/Medicaid, and daycare programs, and that he also actively punished whistleblowers who tried to bring the fraud to an end.

In a lengthy post on X, they outlined what Walz did. Here's some of that testimony:

"Instead of partnership, we got the full weight of retaliation by Tim Walz, certain DFL members, and an indifferent mainstream media," Minnesota DHS writes. "It's scary, isolating, and left us wondering who we can turn to."

"In addition to retaliating against whistleblower (sic), Tim Walz disempowered the Office of the Legislative Auditor, allowing agencies to disregard their audit findings and guidance. Media and politicians supporting Tim Walz or the DFL-agenda attacked whistleblowers who were trying to raise red flags on fraudulent activities," the post continues.

"This is a cascade of systemic failures leading up to Tim Walz. Agency leaders appointed by Tim Walz willfully disregarded rules and laws to keep fraud reports quiet — even to the extent of threatening the families of whistleblowers," the post reads.

A few days later, Walz said motorists were driving past his house and calling him "retard." The Minnesota Republican Congressional delegation, as well as 90 Minnesota mayors, are demanding answers from Walz, too. Both Walz and Attorney General Keith Ellison are slated to testify before a Congressional hearing on the matter in February.

With a wave after wave of bad news hitting him, it appears Tim Walz may be dropping out of the gubernatorial race today.

Here's more from The New York Post:

Walz has come under national scrutiny — including from President Trump — over his handling of alleged Medicaid and day care fraud in Minnesota, with losses that could reach into the multi-billions.

The scrutiny intensified after independent journalist Nick Shirley released viral footage last month showing taxpayer-funded day care centers in Minnesota that appeared largely empty.

Federal authorities have since launched an operation in the Land of 10,000 Lakes aimed at “identifying, arresting, and removing criminals who are defrauding the American people,” according to the Department of Homeland Security.

According to Minnesota political analyst Blois Olson, Walz also met with Senator Amy Klobuchar.

Would Democrats tap her to replace Walz? Some Senators might see a governorship as a demotion, after all.

A news conference is reportedly scheduled for this morning, and we'll keep an eye on it.