Walz Dismisses $9B Fraud Scandal As A GOP ‘Excuse’

Minnesota Gov. Tim Walz brushed aside a sprawling fraud scandal tied to programs in his state, framing it as political ammunition used by Republicans rather than a defining issue of his administration.

During an appearance on “Jimmy Kimmel Live,” Walz pushed back when asked whether the scope of fraud, including cases tied to Medicaid and the Feeding Our Future program, took too long to surface.

He rejected the premise and redirected criticism toward President Donald Trump, arguing that the issue had already been addressed in earlier prosecutions.

“It happens in other states. We were going back — many of these people were prosecuted in 2021. He used it as an excuse because it was a perfect thing to do to say there was fraud. Imagine that — you know, coming from this guy, he would know fraud where it was at,” Walz said.

As the exchange unfolded, host Jimmy Kimmel mocked Trump with a quip, referring to him as “Sigmund Fraud,” while Walz leaned into his argument that the controversy had been weaponized against specific communities.

According to Walz, the fallout from the scandal has been used to cast suspicion on immigrants, particularly within Minnesota’s Somali population.

“Demonize immigrant communities, especially the Somali community,” Walz said, accusing critics of distorting the issue to serve a political narrative.

He described Minnesota’s public assistance programs as part of a broader system in which the state contributes more in federal taxes than it receives, contrasting that with states he said benefit disproportionately from federal support.

“But, they came in to try and destroy those programs and, you know, that’s again rich, destroy programs that don’t help them by billionaires who commit this fraud,” Walz continued.

The governor insisted the political backlash did not reflect how voters ultimately responded.

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“But no, it was an excuse for them to do it. Thank goodness the people of Minnesota showed the courage, stood up and pushed back,” he added.

The comments come as federal authorities continue to build cases tied to what they describe as one of the largest fraud schemes in state history. Prosecutors have filed charges across multiple investigations, with officials estimating the total could exceed $9 billion — a figure Walz and other state leaders have challenged.

Questions about the scandal’s political impact surfaced again when Walz addressed his decision not to seek another term as governor.

He said the controversy did not drive his choice to step away.

“No. And I think for me, look, two terms is probably enough,” Walz said, adding that he does not want to make a long-term career out of elected office.

Instead, he pointed to a series of events that made the past year particularly difficult, including political violence that shook the state’s leadership.

Walz referenced the killing of Democratic–Farmer–Labor Party lawmaker Melissa Hortman and her husband, describing her as a close partner in his work.

“She and I were partners in doing this work,” Walz said, recalling the period following her death.

Authorities said Hortman and her husband were fatally shot in Brooklyn Park by a suspect posing as a police officer, an incident that added to the strain of an already turbulent year in Minnesota politics.

Walz also cited other acts of violence and the increasingly charged political climate as contributing factors in his decision to step back.

“And then the Annunciation shooting … and I think it just kind of got to the point,” he said, describing a cumulative effect rather than a single cause.

While addressing the fraud issue again, Walz returned to his claim that Republicans have amplified the scandal for political gain.

“The fraud stuff on that, Republicans run it up, they put money in it,” he said, arguing that the attention placed on the issue reflects strategic messaging rather than its underlying scope.

Despite stepping away from another gubernatorial run, Walz signaled he is not exiting the political arena entirely.

Earlier in the week, he announced the launch of a new political group aimed at reshaping Democratic outreach in rural communities.

Today, we’re launching Small Town PAC.

We’re going to show up in small towns, organize in places too many people have given up on, and build power with the folks who call these places home.

If Democrats want to win in more places, we’ve got to start showing up in more places. pic.twitter.com/2ZWpvyy59M

— Tim Walz (@Tim_Walz) April 20, 2026

The initiative, called the Small Town PAC, is designed to support candidates in areas where Democrats have struggled to gain traction.

“Republicans like JD Vance like to portray their small-town neighbors as petty, resentful, and small-minded. I disagree. I think the problem facing small towns are Republicans like JD Vance,” Walz stated.

He framed the effort as a shift in strategy, emphasizing direct engagement in regions that have traditionally leaned Republican.

“We’re going to show up in small towns, organize in places too many people have given up on, and build power with the folks who call these places home,” Walz noted.

The plan includes recruiting candidates from within those communities, including workers and professionals who reflect local constituencies.

Walz said he intends “to find some teachers, some nurses, some laborers, vets, and young people in small towns across the country who can represent their communities better than Silicon Valley can.”

Republicans quickly fired back, linking the initiative to the ongoing fraud controversy.

“The problem facing many small towns in Minnesota is that Tim Walz gives their money to fraudulent daycares,” a spokesperson for Vice President JD Vance said in a statement.

The criticism echoes earlier remarks from Vance, who in January argued Walz should step down, saying he either “knew about the fraud in Minneapolis” or “looked the other way.”

.@VP: "Tim Walz is a joke. His entire administration has been a joke… He's a guy who has enabled fraud, and maybe, in fact, has participated in fraud. That's what this new Assistant Attorney General position is going to find out." pic.twitter.com/IbeeNzcRFU

— Rapid Response 47 (@RapidResponse47) January 8, 2026

Those accusations gained traction following a House Oversight Committee report released in March, which alleged Walz and Minnesota Attorney General Keith Ellison were aware of widespread fraud in federally funded programs for years.

“Testimony obtained by the Committee reveals that Gov. Tim Walz and Attorney General Keith Ellison were aware of widespread fraud in social service programs, lied about their knowledge of the fraud, and retaliated against employees who dared to raise concerns,” House Oversight Committee Chairman James Comer said.

Walz has rejected those claims, but the report has continued to fuel criticism from Republican lawmakers and officials.

The governor has also expanded his attacks beyond state-level disputes, using recent appearances to target both Vance and Trump on national issues.

Speaking at a progressive conference in Spain, Walz accused Trump of escalating tensions abroad without a clear strategy.

“We’ve got a feeble-minded, trigger-happy president who plunged us into a war where no threat was present, with no clear objectives and no exit plan. We need to call that what it is. That’s fascism. Or at least it’s fascist curious as they would be,” Walz said.

He acknowledged the political friction between himself and Trump but suggested wider concerns should take priority.

“Look, it’d be easy to stand up here and just bash Donald Trump. He’s an easy target. And if you know me, we don’t get along very well,” Walz said.

“But we’ve got a lot of bigger fish and bigger problems to fry in this room,” he added.

Walz closed by urging international allies not to lose faith in the United States, even as he sharply criticized current leadership.

“Please don’t give up on the American people,” he said. “Go ahead and give up and condemn that monstrosity that sits in our White House.”