Minnesota Gov. Tim Walz is expected to drop his 2026 re-election bid amid criticism over daycare fraud in the state, according to Minnesota political analyst Blois Olson. This comes after content creator and independent journalist Nick Shirley came under spotlight for alleging that there is a massive fraud involving taxpayer dollars in Minnesota's daycare system. He shared various videos on social media to expose fraudulent practices in the state, specifically exposing a Somali-run daycare fraud.
Shirley openly criticized Walz in his videos. Subsequently, the Trump administration said it is stopping federal funds to Minnesota because of fraud.
“Sources: @govtimwalz will make announcement about his political future Mon. He's likely to drop out of the 2026 #mngov race,” Blois Olson posted on X.
Olson told Fox 9 that Democratic Sen. Amy Klobuchar is a likely contender to replace the governor in the race. Walz met with Klobuchar on Sunday, he added.
{{/usCountry}}Olson told Fox 9 that Democratic Sen. Amy Klobuchar is a likely contender to replace the governor in the race. Walz met with Klobuchar on Sunday, he added.
{{/usCountry}}Read More | Nick Shirley fraud row: Musk, Kash Patel weigh in on Minnesota daycare allegations; Tim Walz responds
Walz’s office has scheduled a press conference for 11 am Monday, January 5. His office has not revealed what he plans to address, KARE 11 reported.
Tim Walz comes under scrutiny
Shirley blasted Walz in his recent Minnesota videos, saying in one of them, “Tim Walz is governor and knew about the fraud but never reported it, can you imagine if he was the VP right now??”
“The big question is will Tim Walz be held accountable?” Shirley wrote in another post.
State Rep. Kristin Robbins (R–Maple Grove), chairwoman of the Minnesota Fraud Committee and a GOP gubernatorial candidate, told the New York Post that she alerted the Walz administration after holding a hearing on daycare fraud in February 2024, but her warnings were not taken seriously. “I gave the Department of Human Services a list of day care providers getting over $1 million in the previous year from the state who had numerous violations, and this day care was one of them on the list,” Robbins said. “They can’t say they didn’t know. We had a hearing on it. We gave them a list, and nothing has happened.”
“I find it shocking that this is still happening when we flagged something over and over again,” she added.
Walz's team provided a statement to Fox News after the allegations of fraud surfaced, following Shirley’s investigation. “The governor has worked for years to crack down on fraud and ask the state legislature for more authority to take aggressive action. He has strengthened oversight — including launching investigations into these specific facilities, one of which was already closed,” a spokesperson told the outlet.