Tim Walz says he takes responsibility for Minnesota fraud by not running for re-election

Gov. Tim Walz took responsibility for mishandling fraud in Minnesota even as he took multiple parting shots at the Trump administration.

During Friday’s episode of "The Lever" podcast, Walz said that he lacked the authority to independently stop payments to suspected fraudsters and needed legislative action to obtain that authority, but nonetheless acknowledged that his administration should have acted sooner.

"The amount of fraud, like I said, $1 is too much, but the amount that has been prosecuted, and people put in jail, is less than what [President Donald Trump] is asking for his ballroom," Walz said. 

When pressed further by the host about whether he was worried that the fraud allegations would continue to be damaging, Walz replied, "Yes. They undermine faith in government."

He added, "It's one of the reasons I accept responsibility for that. I think, you know, I had decided, probably after the murder of Melissa Hortman, certainly before Christmas, that we weren't going to run again because I said, ‘They're going to use this to attack others and to attack the system.’"

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Minnesota Gov. Tim Walz announced in early 2026 that he would not seek a third term as governor. (Scott Olson/Getty Images)

"Every state has this. Most states have far more than this," he added. "The Trump administration decided to focus on the perfect storm for them," Walz said.

"‘Blame Somalis.’ ‘Blame the guy who ran against me.’ ‘Blame this prosperous state that pays more money in than not and let's punish them.’ But that doesn't excuse that. Should we do more? Yes. Were there things that we should have closed back doors sooner? Yes. I mean, it happened. Now we know other states are learning from us."

He later said, "The problem with fraud and corruption, both of them undermine faith in government, and that plays right into Republicans' hands. Do they like fraud? I would argue they do because it undermines federal. It makes a reason to cut these programs. They hate these programs that feed children. They hate these programs that, you know, work with autistic children. So, man, what a gift to them. ‘See, they don't work. It's tax dollars. Let's close them down.’"

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Tim Walz says he took responsibility for the Minnesota fraud scandal by not running for re-election, calling the controversy a "gift" to Republicans. (Getty Images)

Former chief counsel for House Judiciary Democrats Julian Epstein spoke with Fox News Digital about the interview.

"These excuses insult our intelligence," he said of Walz's statements. 

"The governor has ample authority to stop payments when there's evidence of fraud. The governor can also refer the evidence to state and federal prosecutors for immediate action. The reality here is that this systemic fraud seemed to be going on for over a decade with officials like Tim Walz and Peggy Flanagan doing almost nothing about it. And there are serious questions as to whether they turned a blind eye because the beneficiaries of the fraud were voting for them, contributing to their campaigns, we're helping them politically in some way. The real question is whether these senior officials were somehow benefiting directly or indirectly."

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"The amount of fraud, like I said, $1 is too much, but the amount that has been prosecuted and people put in jail, is less than what [President Donald Trump is] asking for his ballroom," Minnesota Gov. Tim Walz argued. (Aaron Schwartz/CNP/Bloomberg)

Former chief counsel for House Judiciary Democrats Theo Wold spoke about the interview to Fox News Digital as well.

"They were in charge while foreigners and criminals pilfered billions in public funds, and Democrats let it all happen. Now they deflect and blame Republicans. You can’t make it make sense," Wold said. 

"Republicans want government to work for American citizens. Democrats like Tim Walz prefer broken bureaucracy and wasteful programs because they know that is how to keep the fraud benefiting foreign nations hidden and their friends rich," he added.

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Fox News Digital reached out to Governor Walz about Mr. Epstein and Mr. Wold's comments.

Fox News Digital reached out to the White House for comment but did not receive an immediate response.

Alexander Hall is an associate editor for Fox News Digital. Story tips can be sent to Alexander.hall@fox.com.