Governor Tim Walz of Minnesota has abandoned his reelection bid amid a fraud investigation into childcare programmes that accused his administration of diverting millions of dollars in what the U.S. Department of Justice described as the “largest COVID-19 fraud scheme in the country.”

Mr Walz, who was the Democratic vice-presidential candidate in the 2024 elections, had announced plans to seek a third term in 2026 but withdrew from the race on Monday.

The Democrat said the decision became imperative to avoid depriving Minnesota residents of good leadership. He had announced his third re-election bid in September 2025 but backtracked on Monday, stressing he could no longer contest.

“I’ve decided to step out of the race and let others worry about the election while I focus on the work,” Mr Walz said in a statement.

House Republicans last week summoned Mr Walz to testify to the fraud scandal on February 10.

Mr Walz, in his withdrawal, said that the time spent defending himself against the allegations should be focused on providing good governance for the people.

“But 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,” the governor said.

“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.”

He further blamed Mr Trump’s administration for frustrating his governance by withholding funds for key programmes.

“Donald Trump and his allies—in Washington, in St. Paul, and online—want to make our state a colder, meaner place,” Mr Walz said. “They want to poison our people against each other by attacking our neighbors. And, ultimately, they want to take away much of what makes Minnesota the best place in America to raise a family.”