Tim Walz’s decision to retreat is what corrupt leadership looks like: He refused to tackle the fraud, attacked others who did, and is now leaving Minnesota worse than he found it — with billions stolen, trust shattered, and systems broken.
This article is a lightly edited transcript of the “Here’s the Point” podcast by Ryan Helfenbein, executive director of the Standing for Freedom Center.
This week, Tim Walz announced that he will not pursue re-election as Minnesota’s governor. After six years in office (including a failed 2024 vice-presidential run alongside Kamala Harris), Walz is stepping away from a state drowning in scandal. The timing is no coincidence.
Under Walz’s watch, Minnesota became ground zero for massive, systemic fraud in welfare and assistance programs. An estimated $9 billion in taxpayer funds — nearly equal to Somalia’s entire GDP — was stolen through fraudulent daycare centers, child nutrition programs, and pandemic relief schemes. Texas Gov. Greg Abbott called Minnesota’s childcare program an “epic failure,” noting that Minnesota’s improper-payment rate is 11 percent compared to Texas’s 0.43 percent.
House Majority Whip Tom Emmer demanded Walz account for the fraud and consider resignation. Nearly 500 Minnesota Department of Human Services (DHS) staffers accused Walz of ignoring warnings and retaliating against whistleblowers. The U.S. Treasury is investigating whether stolen funds were funneled to Islamic terror group Al-Shabaab through hawala networks.
Make no mistake: This wasn’t mere incompetence. This was systematic negligence that enabled criminals to loot Minnesota’s treasury while Walz looked the other way. How should we think about this? Three points:
First, Walz allowed billions in welfare fraud to operate unchecked for years.
Minnesota’s Child Care Assistance Program collapsed under corruption. A 2018 audit warned that the program lacked proper oversight, but Walz did nothing. The results were predictable and catastrophic.
As evidenced in viral reporting by Nick Shirley, Mako Childcare and Mini Childcare Center received $5 million for services in an empty building. ABC Learning Center got $3 million despite being licensed for only 40 children. Future Leaders Early Learning Center received over $3 million in 2025 without required paperwork. Quality Learning Center collected $4 million over two years while inactive. A single Minneapolis building housing Somali-owned businesses siphoned between an estimated $50 to $60 million.
The “Feeding Our Future” scandal saw $250 million stolen from child nutrition programs. Tens of millions more were defrauded from autism treatment programs. This wasn’t isolated fraud — it was systematic looting enabled by Walz’s refusal to enforce oversight.
When confronted, Walz called investigative journalist Nick Shirley a “delusional conspiracy theorist.” He deflected blame, claimed budget surpluses that didn’t exist, and systematically attacked anyone who exposed the truth. This is what corruption looks like when leadership fails.
Second, Walz’s negligence extended to federal programs, risking hundreds of millions more.
The Small Business Administration (SBA) suspended 6,900 Minnesota borrowers for over $400 million in suspected fraudulent PPP and EIDL loans. Another $430 million in potentially fraudulent PPP loans were funded — and some forgiven — during Walz’s governance. The SBA halted over $5.5 million in annual federal funds to Minnesota partners due to fraud revelations.
Over $550 million was stolen from COVID pandemic relief programs in Minnesota alone. These weren’t victimless crimes. This was theft from American taxpayers during a national emergency.
Walz also presided over what Republicans called an “illegal CDL operation.” A third of Minnesota’s non-domiciled commercial driver’s licenses (CDLs) were issued illegally to foreigners, violating federal rules and risking $30.4 million in federal highway funds. Minnesota was “openly and blatantly defying” federal CDL regulations, compromising road safety across the nation.
When confronted with these failures, Walz didn’t clean house. He didn’t fire corrupt officials. He didn’t demand accountability. Walz did nothing.
Third, Walz systematically retaliated against whistleblowers who tried to stop the fraud.
Nearly 500 Minnesota DHS staffers came forward alleging that Walz ignored their warnings about Somali fraud in aid programs. When they raised concerns, they were monitored, threatened, and discredited. Reports exposing fraud were suppressed. Walz disempowered the Office of the Legislative Auditor — the very office designed to catch this fraud — and he let the corruption continue.
This is the behavior of someone who either knew about the fraud and didn’t care or was so incompetent he couldn’t see it happening right under his nose. Either way, Walz is unfit for office.
When government fails this badly, people suffer. Legitimate families who needed childcare assistance couldn’t get help because fraud drained the system. Honest small businesses couldn’t access pandemic relief because criminals got there first. Roads became less safe because Minnesota issued CDLs to unqualified foreign drivers.
How should we think about this? Romans 13 is clear: Government exists to punish wrongdoers and it exists to promote the good. When government fails to do this — when it enables theft, silences whistleblowers, and attacks those who expose truth — it abandons its God-given mandate.
Tim Walz’s decision not to seek re-election isn’t leadership — it’s retreat. And how convenient for him. He’s leaving Minnesota worse than he found it: billions stolen, trust shattered, and systems broken. The question now is whether Minnesota will elect leaders who will restore accountability, prosecute fraud, and protect taxpayers. And also, it remains to be seen whether national Republicans will act in prosecuting this case.
Minnesotans deserve better. Americans deserve better. And those who enabled $9 billion in theft should absolutely face consequences — not retirement announcements.
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