Walz Steps Down: Minnesota’s Democratic Future in Peril After $9 Billion Scandal

MINNEAPOLIS — Minnesota Governor Tim Walz has announced he is dropping out of his re-election campaign for governor, citing federal scrutiny from President Donald Trump over alleged frauds under his administration.

Federal prosecutors estimate that the Somali daycare scam and other fraudulent schemes cost taxpayers up to $9 billion. Independent journalist Nick Shirley exposed these operations early on.

Walz’s decision follows a significant decline in support among Somali American voters in Minnesota, where approval for the Harris-Walz presidential ticket dropped 14 percentage points between 2020 and 2024.

The scandal has raised serious questions about Walz’s leadership capabilities. Just months ago, Walz was Kamala Harris’ running mate with potential to reach the White House. Now, he faces a political reckoning that could reshape the Democratic Party’s prospects in the Upper Midwest.

Minnesota remains the only blue state in the region since Trump’s 2024 victory. If Republican candidates gain traction in the state next year, it would mark the first time Minnesota has elected a Republican president in more than five decades — a shift with potential national implications for the Democratic Party.