A massive fraud scandal involving up to $1 billion in stolen federal nutrition funds is threatening to derail Minnesota Governor Tim Walz’s political future, with Democratic allies now questioning whether he should abandon plans for a third term — or any national ambitions.
The scandal centers around the fraudulent misuse of taxpayer funds intended to feed children during the COVID-19 pandemic. Prosecutors have secured over 50 convictions, primarily linked to members of Minnesota’s Somali community, who allegedly exploited a government program for personal gain. The scope of the theft, which may reach $1 billion according to federal prosecutors, has drawn national media attention following a November 29 report by The New York Times.
Former Minnesota Democrat State Senator Ember Reichgott Junge told The Hill that while Walz had served respectably, the scandal is “a real vulnerability.” Junge said the fraud “happened on his watch” and ongoing audits “will probably uncover more.” She added that the issue dominates local headlines and will likely remain a political liability into next year.
Another Walz ally told The Hill that Minnesotans have “a very low tolerance for fraud, waste, and abuse,” and the scandal could not only sink his gubernatorial prospects but also any shot at the White House.
The controversy has deepened with accusations that Walz’s administration ignored repeated internal warnings. Nearly 500 state employees claim they raised alarms about the fraud for years, but were ignored or even punished by officials allied with the governor.
Small Business Administration Secretary Kelly Loeffler recently accused Walz of using “his best efforts to obstruct” federal investigations into the matter.
The fallout could spell the end for Walz’s rising political star. Once tapped as a national figure by Vice President Kamala Harris, insiders now say he never found his footing on the larger stage.
