Minnesota Gov. Tim Walz has dropped his re-election campaign as scrutiny over his administration’s handling of alleged fraud in the state intensifies. “Minnesota has to come first – always. Today, I’m proud of the work we’ve done to make Minnesota the best place to live and raise kids,” Walz said on X. “I’ve decided to step out of the race and let others worry about the election while I focus on the work,” he added. “For the last several years, an organized group of criminals have sought to take advantage of our state’s generosity. And even as we make progress in the fight against the fraudsters, we now see an organized group of political actors seeking to take advantage of the crisis,” Walz said in a lengthy statement. “I won’t mince words here. Donald Trump and his allies – in Washington, in Saint Paul, and online – want to make our state a colder, meaner place. They want to poison our people against each other by attacking our neighbors. And, ultimately, they want to take away much of what makes Minnesota the best place in America to raise a family. They’ve already begun by taking our tax dollars that were meant to help families afford child care. And they have no intention of stopping there,” the statement continued. Minnesota has to come first – always. Today, I’m proud of the work we’ve done to make Minnesota the best place to live and raise kids. I’ve decided to step out of the race and let others worry about the election while I focus on the work. pic.twitter.com/AYbvcOzyPI — Governor Tim Walz (@GovTimWalz) January 5, 2026 Read the full statement: Walz is scheduled to hold a press conference Monday morning about dropping his re-election campaign. Reports indicated Sen. Amy Klobuchar (D-MN) is considering entering the gubernatorial race. POLITICO has more: Walz, who served as the Democrats’ 2024 vice presidential nominee, met with Sen. Amy Klobuchar (D-Minn.) on Sunday to discuss the campaign, as Klobuchar considers her own run for the governorship, according to one of the people familiar with the meeting. Walz had faced increasing political pressure over a federal probe into a sweeping fraud scandal in the state. Tim Walz abruptly drops out of Minnesota governor’s race in wake of alleged billion-dollar fraud scandal https://t.co/LnicWao6BL pic.twitter.com/nV33enTiHM — New York Post (@nypost) January 5, 2026 “With speculation swirling about the political future of Tim Walz it is more important than ever to have strong candidates for Governor and the legislature so we can take back our state,” the Republican Party of Minnesota stated. “Plan on attending precinct caucuses on February 3. It’s the first step in choosing our winning team for November. And remember to bring like minded family and friends with you to caucus,” it added. With speculation swirling about the political future of Tim Walz it is more important than ever to have strong candidates for Governor and the legislature so we can take back our state. Plan on attending precinct caucuses on February 3. It’s the first step in choosing our… pic.twitter.com/1r4Ce3drcn — Republican Party of Minnesota (@mngop) January 5, 2026 FOX 9 Minneapolis-St. Paul shared: Sunday afternoon, a spokesperson announced Governor Walz would hold a news conference at 11 a.m. to take questions and discuss “the news of the day.” No other details about the press conference were shared by the governor’s office.