Minnesota Gov. Tim Walz abandons re-election bid as Somali fraud scandal threatens $9 billion in taxpayer losses

• Minnesota Governor Tim Walz will not seek a third term.
• His exit follows a massive fraud scandal in state programs.
• The theft may involve billions of dollars from daycare, food, and Medicaid funds.
• Walz faced criticism for inadequate oversight and a slow response.
• The scandal has led to bipartisan political fallout and federal scrutiny.

In a stunning political collapse, Minnesota Democratic Governor Tim Walz announced Monday he will not seek a third term. This decision comes amid a firestorm of criticism over his administration’s handling of a massive, coordinated fraud scheme within the state’s Somali community, which prosecutors say may represent the largest theft of taxpayer dollars in U.S. history. Facing congressional investigations, calls for testimony, and abandonment by members of his own party, Walz is stepping aside as the scale of the scandal—involving fake daycare centers, phantom meal programs, and fraudulent Medicaid claims—continues to shock the nation.

Walz, who was Kamala Harris’s 2024 running mate, framed his exit as a move to focus on addressing the crisis rather than campaigning. “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,” Walz said in a statement. However, critics see his departure as a direct result of being overwhelmed by a billion-dollar scandal that flourished under what many call a culture of woke negligence and failed oversight.

The staggering scale of theft

The scandal is not a single event but a network of frauds. More than 90 people, most from Minnesota’s large Somali community, have been charged since 2022 in what authorities describe as a collection of brazen money laundering operations. The U.S. attorney in Minnesota has stated the scope could exceed $1 billion and potentially reach as high as $9 billion stolen from Medicaid, daycare, and food aid programs since 2018. White House officials have labeled it the “biggest theft of taxpayer dollars in U.S. history.”

One major component is the “Feeding Our Future” scandal, where a Somali-linked nonprofit is accused of siphoning $250 million in pandemic-era food aid meant for underprivileged children. FBI Director Kash Patel called this fraud “as shameless as it gets,” noting funds were used to buy “mansions and luxury cars.” Prosecutors said that some funds were sent overseas. While conservative researchers have claimed stolen money may have reached the Somali terrorist group al-Shabab, federal investigators who prosecuted the cases maintain there is no evidence taxpayer dollars funded terrorism. However, the Treasury Department continues to investigate the allegations.

Empty daycares and phantom services

The fraud expanded into other state programs. Federal prosecutors have charged individuals for defrauding housing subsidy and early-autism services programs, with one case involving “fraud tourism” where individuals from Philadelphia enrolled companies in Minnesota to file $3.5 million in false Medicaid claims. The most visually arresting evidence came from independent journalist Nick Shirley, whose viral video exposed apparently fake daycare centers. Shirley filmed visits to addresses of Somali-run daycares that were vacant storefronts, closed businesses, or locations where occupants refused to answer questions.

Despite these red flags, the schemes continued. The Washington Post editorial board scorched Walz for “refusing to take responsibility for the welfare fraud that happened in plain sight during the pandemic.” U.S. Attorney Joseph Thompson noted that every time his office “looks under a rock,” another multi-million dollar scheme appears, a network of fraud “swamping Minnesota and calling into question everything we know about our state.”

A governor’s failed response

Walz eventually took a measure of responsibility, stating in December, “This is on my watch, I am accountable for this and, more importantly, I am the one that will fix it.” His administration pointed to actions like hiring an outside audit firm, pausing payments in high-risk programs, and supporting prosecutions. However, these steps were widely seen as too little, too late. A House Oversight Committee probe faulted Walz for inefficient oversight, with Chairman James Comer, R-Ky., writing that the committee had “serious concerns” the administration was “fully aware of this fraud and chose not to act for fear of political retaliation.”

The political fallout was swift and severe. President Donald Trump repeatedly blasted Walz as “incompetent.” Minnesota Republican state Rep. Kristin Robbins, a gubernatorial candidate, said, “Tim Walz and his staggering fraud could not outrun our investigations.” Even fellow Democrats grew wary, with nearly a dozen telling the Minnesota Star Tribune in recent weeks they thought he should not seek re-election, some comparing his situation to Joe Biden’s disastrous 2024 campaign.

Walz’s exit marks a humbling end for a figure who briefly rose to national prominence. It also exposes a profound failure in governance, where a desire to avoid accusations of racism or political incorrectness may have enabled criminals to exploit public compassion.

Sources for this article include:

InfoWars.com

FoxNews.com

NYTimes.com

FoxNews.com