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ST. PAUL, Minn. — Minnesota Gov. Tim Walz announced Monday that he will not seek a third term in office, ending speculation about his political future as the state faces mounting scrutiny over alleged fraud involving federal social services programs.

Walz, who was first elected governor in 2018 after more than a decade in the U.S. House, said in a statement that continuing a reelection campaign would distract from his responsibilities as governor. He said his focus must remain on addressing criminal activity and maintaining public trust rather than defending his own political interests.

The announcement comes as Minnesota has drawn national attention over allegations that millions of taxpayer dollars were improperly distributed through welfare and childcare programs. Republicans, including President Donald Trump, have highlighted the cases while accusing state leadership of failing to prevent widespread abuse. Walz has pushed back against claims that the state ignored fraud but acknowledged the need for stronger oversight.

Fraud allegations intensified following reports that federal funds were diverted from Minnesota’s welfare system and after a video by independent journalist Nick Shirley claimed to show vacant daycare centers receiving substantial federal payments. Walz is scheduled to testify before Congress on Feb. 10 regarding the allegations.

With Walz stepping aside, Minnesota’s 2026 gubernatorial race is expected to become highly competitive. On the Republican side, declared candidates include House Speaker Lisa Demuth, MyPillow CEO Mike Lindell, and former state Sen. Scott Jensen. Minnesota’s primary election is scheduled for Aug. 11.


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