Minnesota Governor Tim Walz announced in January 2026 that he would not seek a third term, citing the need to focus on governing amid an expanding investigation into billions of dollars in alleged fraud within state Medicaid waiver and social services programs. Republican state lawmakers and members of Congress have repeatedly called for his immediate resignation, pointing to oversight failures and invoking constitutional standards for malfeasance. Walz has rejected those demands, stating he will complete his term ending in January 2027 and emphasizing accountability through continued service rather than stepping down early. No further resignation developments have emerged through late May 2026, including during his final State of the State address in April. The market hinges on whether mounting political pressure, ongoing federal probes, or legislative actions could alter his stated intention to serve out the remainder of his term.