Tim Walz Finally Takes Responsibility For Minnesota's Fraud Mess - But There's A Catch!

During a recent episode of "The Lever" podcast, Walz claimed he lacked the unilateral authority to halt payments to suspected fraudsters and insisted he needed legislative approval to do so, yet conceded his administration should have intervened earlier. According to Fox News, the Democratic governor nonetheless used the platform to swipe at President Donald Trump and to portray the scandal as part of a broader partisan assault on government programs.

"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, minimizing the scale of the scandal by comparing it to Trumps personal spending. When pressed by the host on whether he feared the fraud allegations would continue to damage him politically, Walz admitted, "Yes. They undermine faith in government."

October 19, 2026

He went on to frame his acceptance of responsibility as a way to shield others in his party from political fallout. "It's one of the reasons I accept responsibility for that," Walz said, adding, "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."

Walz also attempted to normalize the scandal by suggesting Minnesota was hardly alone. "Every state has this. Most states have far more than this," he said, before accusing the Trump administration of exploiting the situation: "The Trump administration decided to focus on the perfect storm for them," Walz said.

He then launched into a broadside against his critics, characterizing them as bigoted and vindictive toward his state. "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."

Walz further argued that the scandal ultimately serves Republican interests by eroding public trust in government programs. "The problem with fraud and corruption, both of them undermine faith in government, and that plays right into Republicans' hands," he said, before accusing conservatives of secretly welcoming abuse of taxpayer funds: "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."

Legal experts, however, are challenging both Walzs narrative and his claims of limited authority. Former chief counsel for House Judiciary Democrats Julian Epstein told Fox News Digital that the governors defense does not withstand scrutiny.

"These excuses insult our intelligence," Epstein said, rejecting Walzs assertion that he was powerless to act. "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."

Former acting assistant attorney general Theo Wold, also speaking to Fox News Digital, was even more blunt in his assessment of Democratic leadership in Minnesota. "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 cant make it make sense," Wold said.

Wold argued that the scandal underscores a deeper philosophical divide between the parties over the role and accountability of government. "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.

As billions in taxpayer dollars remain at the center of the controversy and prosecutions continue, Walzs attempt to balance nominal responsibility with partisan blame-shifting is drawing sharp criticism from both legal experts and conservatives who see the scandal as a textbook case of big-government failure. Fox News Digital reached out to Walz and the White House for comment but did not receive an immediate response.