Minnesota Gov. Tim Walz announced on Monday that he will not seek reelection to a third term amid mounting criticism over a welfare fraud scandal in the state, according to CNN.

In a statement posted on X/Twitter, Walz said he had "decided to step out of the race and let others worry about the election while I focus on the work."

CNN reported that Walz, who was the Democratic nominee for vice president in the 2024 election, spent the weekend consulting with friends and advisors about his political future.

“As I reflected on this moment with my family and my team over the holidays, I came to the conclusion that I can’t give a political campaign my all,” Walz said in a statement. “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.”

According to two senior Democrats familiar with the discussions, he also met with Minnesota Senator Amy Klobuchar on Sunday as she considers a possible bid to enter the race.

US Democratic vice presidential candidate, Minnesota Governor Tim Walz speaks during a campaign visit to his home state in Omaha, Nebraska, US August 17, 2024.
US Democratic vice presidential candidate, Minnesota Governor Tim Walz speaks during a campaign visit to his home state in Omaha, Nebraska, US August 17, 2024. (credit: REUTERS/MARK MAKELA)

What are the fraud allegations against Walz?

Recently, the Trump administration has focused on Walz and the state of Minnesota, particularly its substantial population of Somali Americans and Somali immigrants.

This attention stems from allegations of fraud involving nonprofit organizations that manage the state's childcare and other social services programs, which receive federal funding. 

Although Walz himself has not been accused of any wrongdoing, there is growing pressure for him to be held accountable for the misuse of taxpayer dollars that has been uncovered.

According to CNN, Minnesota officials have until January 9 to provide the Trump administration with information about providers and parents who receive federal child care funds.

“For the last several years, an organized group of criminals has sought to take advantage of our state’s generosity,” Walz said in his statement. “And even as we make progress in the fight against the fraudsters, we now see an organized group of political actors seeking to take advantage of the crisis.”

Additionally, he accused Trump and his political allies of wanting to transform our state into a colder, meaner place.

The Trump administration, which has vowed to deport more immigrants than any prior administration, has singled out Minnesota for investigations and in social media posts, alleging that rampant fraud is being committed by immigrants in the welfare system.

Administration officials have frequently and sharply criticized the state's Somali communities, as well as Walz, and Representative Ilhan Omar, a Somali-American Democrat who represents a Minneapolis-based district in Congress.

Reuters contributed to this report.