Minnesota Gov. Tim Walz is reportedly expected to announce his decision to end his 2026 gubernatorial re-election campaign, political insider Blois Olson reported Sunday (January 4) night on his X account.

"BREAKING: Sources: Gov. Tim Walz will make announcement about his political future Mon. He's likely to drop out of the 2026 #mngov race. He met w/ Sen. Amy Klobuchar on Sun," Olson wrote.

A spokesperson for Walz confirmed that the former 2024 Democratic vice presidential candidate would be taking questions during a press conference to discuss "the news of the day" on Monday (January 5) at 11:00 a.m. local time prior to Olson's report. The reported decision followed criticism from President Donald Trump and others over his handling in the Minnesota Medicaid fraud case, with conservatives accusing him of being slow in his response to the alleged fraud.

Deputy Secretary of Health and Human Services Jim O'Neill announced the Trump Administration decision to freeze child care funds to Minnesota and demand an audit on several day care centers following a series of reported fraud schemes involving government programs alleged to have taken place in recent years last Wednesday (December 31). Walz pushed back on his X account, claiming the state had spent several years cracking down on fraudsters but the decision to freeze child care funds was part of Trump "politicizing the issue."

"This is Trump’s long game. We’ve spent years cracking down on fraudsters. It’s a serious issue - but this has been his plan all along. He’s politicizing the issue to defund programs that help Minnesotans," Walz wrote in response to O'Neill's announcement.

O'Neill referenced a video shared by a right-wing influencer claiming that day care centers operated by Somali residents in Minneapolis had committed up to $100 million in fraud and demanded Walz submit an audit of the centers alleged to have been involved in the schemes, which would include attendance records, licenses, complaints, investigations and inspections.

“We have turned off the money spigot and we are finding the fraud,” O’Neill said.

The administration's announcement came one day after U.S. Homeland Security officials were reported to be conducting a fraud investigation in Minneapolis, which included visiting unidentified businesses and questioning workers. Several fraud investigations have been launched in Minnesota in recent years including a $300 million pandemic food fraud scheme centered around the nonprofit Feeding Our Future, which resulted in 57 people being convicted.

Klobuchar is reported to be on the list of potential contenders for the seat if Walz does announce the end of his re-election campaign.