Minnesota Governor Tim Walz announced Monday morning that he will not seek a third term, withdrawing from the gubernatorial race he entered just months ago to focus entirely on addressing a massive fraud crisis that has plagued his administration.

The two-term Democratic governor, who served as the vice presidential nominee in the most recent election cycle, made the announcement ahead of a scheduled news conference, citing his need to dedicate full attention to protecting Minnesota taxpayers rather than defending his political future.

“I came to the conclusion that I can’t give a political campaign my all,” Walz stated. “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. So I’ve decided to step out of the race and let others worry about the election while I focus on the work.”

The decision comes as Walz faces mounting pressure over his administration’s handling of widespread Medicaid fraud. According to a top state prosecutor, the fraudulent activity has cost Minnesota taxpayers as much as nine billion dollars, a staggering sum that has drawn bipartisan criticism and calls for accountability.

Walz, a former congressman and teacher before entering the governor’s mansion, has maintained that his administration is implementing aggressive measures to combat the fraud and prevent future incidents. He acknowledged the severity of the situation while defending the efforts of state workers addressing the crisis.

“All across the state, Minnesotans are hard at work on this problem,” Walz said. “Advocates, administrators, investigators are on the front lines defending the integrity of our state’s programs, and I want to thank them for their efforts. There’s more to do. A single taxpayer dollar wasted on fraud is a dollar too much to tolerate.”

The governor emphasized that while responsibility extends across multiple levels of government and private sector entities, ultimate accountability rests with his office. “The buck stops with me,” he stated. “My administration is taking fast, decisive action to solve this crisis. And we will win the fight against the fraudsters.”

The fraud scandal has not been Walz’s only challenge in recent months. President Trump has repeatedly targeted the Minnesota governor with harsh criticism and personal attacks. Over the Thanksgiving holiday, the president used derogatory language to describe Walz on social media, and during a Sunday media appearance, Trump called him “a very stupid, low-IQ governor.”

More seriously, the president shared a conspiracy theory video over the weekend suggesting Walz’s involvement in the death of Minnesota House Speaker Melissa Hortman. Hortman, a close friend and political ally of the governor, was killed in her home alongside her husband on June 14. State Senator John Hoffman and his wife Yvette were also injured in the incident. A suspect faces multiple federal charges, including two counts of murder.

Walz condemned the president’s actions as “dangerous, depraved behavior.”

The governor initially announced his intention to seek reelection in September but stated he reevaluated that decision during the holiday season. His withdrawal from the race leaves the Democratic field open as the party seeks to maintain control of the governor’s mansion in a state that has become increasingly competitive in recent election cycles.

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