Walz, a Democrat who rose to national prominence as Kamala Harris's vice presidential running mate in the 2024 election, emphasized in his announcement a desire to prioritize governing over campaigning. In a statement, he said, "Every minute I spend defending my own political interests would be a minute I can’t spend defending the people of Minnesota against the criminals who prey on our generosity and the cynics who prey on our differences." He described the past year as "extraordinarily difficult" for the state and expressed confidence that a Democrat would succeed him, leaving the race with "zero sadness and zero regret."
The announcement follows heightened scrutiny of fraud in Minnesota's welfare programs, with federal prosecutors estimating potential losses exceeding $9 billion since 2018 across various initiatives, including Medicaid-funded services. While Walz has not yet been accused of wrongdoing, it is clear that he and his administration has a perceived lax of oversight.
A pivotal development amplifying the scandal was a viral video released on December 26, 2025, by 23-year-old conservative YouTuber and independent journalist Nick Shirley. Titled "I Investigated Minnesota’s Billion Dollar Fraud Scandal," the 42-minute video documented Shirley and an associate visiting nearly a dozen child care centers in Minneapolis, many serving the Somali-American community. The footage depicted facilities appearing empty or inactive during business hours, despite receiving substantial public funding through the Child Care Assistance Program (CCAP). Shirley claimed to have uncovered evidence of over $110 million in suspicious payments in a single day of research, framing it as part of broader systemic fraud under Walz's oversight as governor.
The video rapidly gained traction, amassing millions of views on YouTube and over 135 million impressions on X, amplified by figures including Vice President J.D. Vance and Elon Musk. It prompted immediate federal responses: the Trump administration froze federal childcare payments to Minnesota, surged FBI and DHS resources to the state, and expanded ongoing probes. Minnesota Republicans, including House Speaker Lisa Demuth, confirmed collaboration with Shirley on the investigation.
Currently, no criminal charges have stemmed directly from Shirley's specific footage. Unfortunately, critics, including mainstream outlets, are questioning Shirley’s methods and claiming a lack of conclusive proof of criminality.
Shirley's exposé built on prior scandals, notably the Feeding Our Future case, a $250 million COVID-era scheme involving falsified meal claims, leading to dozens of convictions, primarily among Somali-American defendants. As of early 2026, federal probes into Minnesota's social services have resulted in 98 indictments and 62 convictions across multiple programs.
President Trump has repeatedly criticized Walz, accusing Somali immigrants of large-scale fraud and vowing deportations. Republican leaders, including House Oversight Chair James Comer, have called for Walz's accountability. News outlets such as CNN and The New York Times have framed Walz's withdrawal as influenced by intraparty Democratic concerns over midterm vulnerabilities, with reports of consultations involving Senator Amy Klobuchar, who is now considering a gubernatorial bid.
Walz has described the fraud as the work of "an organized group of criminals" while accusing opponents of politicizing the issue. His administration has implemented reforms, but the scandal's resurgence, as seen in Shirley's video, contributed to the intense pressure that led to his exit.
This shift reshapes Minnesota's 2026 elections, opening the Democratic field for potential candidates, including Lt. Gov. Peggy Flanagan, while energizing Republicans, with figures like MyPillow CEO Mike Lindell in the mix. Walz's tenure since 2019 has featured radical advances in education, healthcare, and climate policy. Walz will continue to serve as governor until January 2027.
