The Fraud Allegations in Minnesota Might Be the Final Nail in Governor Tim Walz's Political Career

"So I’ve decided to step out of the race and let others worry about the election while I focus on the work."

Jennifer Tisdale - Author
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Published Jan. 5 2026, 10:23 a.m. ET

Is Governor Tim Walz Resigning? Here Is the Latest Update
Source: Mega

Minnesota has been at the center of numerous fraud allegations that were amplified by YouTuber Nick Shirley. A video released by the controversial content creator shows Shirley knocking on doors of various daycare centers in Minneapolis in an effort to investigate claims they were keeping money meant for low-income childcare facilities. This video was shared on social media by the likes of Elon Musk and Vice President J.D. Vance.

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The state launched its own investigation and found that the daycare centers were "operating as expected," reported Boston's WCVB. Despite this, the allegations have plagued Minnesota Governor Tim Walz, who was mentioned numerous times in Shirley's viral video. Is he resigning? Here's what we know.

Minnesota governor Tim Walz
Source: Mega
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Tim Walz is not resigning, but is dropping his re-election bid.

In a post to X (formerly Twitter), Governor Walz announced he is ending his re-election bid and will not seek a third term in office. He cited the fraud allegations and the "political gamesmanship ... from Republicans," which is "only making that fight harder to win." He will finish out his second term, which ends in January 2027.

The Minnesota governor went on to say that he couldn't possibly give a campaign the attention it deserves in light of what's happening in the state. "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," said Walz. "So I’ve decided to step out of the race and let others worry about the election while I focus on the work."

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Governor Walz said President Donald Trump wants to make Minnesota a meaner place.

The governor did not mince words when he called out both the "organized group of criminals" who were taking advantage of Minnesota's generosity. He also referenced an "organized group of political actors seeking advantage of the crisis." This appears to be a reference to Shirley and his supporters.

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Walz also turned his attention to President Donald Trump, accusing him and his allies of wanting to make Minnesota a "colder, meaner place." He continued, "They want to poison our people against each other by attacking our neighbors." According to The Hill, the Department of Health and Human Services (HHS) froze federal funding to Minnesota's childcare providers. "We are not going to spend money on Minnesota until we’re confident there is no fraud," said Deputy HHS Secretary Jim O’Neill.

In an effort to be transparent, Walz said he has spent the past few years fighting for the money needed to investigate fraud. "We've fired people who weren't doing their jobs," said the governor. "We've seen people go to jail for stealing from our state." After discovering "widespread criminal activity," Minnesota cut off streams of funding from the federal government and put locks on the doors of its remaining programs. There is more to do, but Walz believes the Republicans are making it harder.

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