Minnesota Governor Tim Walz faces an ongoing Department of Justice criminal investigation launched in January 2026 over allegations he and Minneapolis Mayor Jacob Frey obstructed federal immigration enforcement amid probes into a massive Minnesota welfare fraud scandal involving over $250 million, primarily in childcare programs with many Somali-American defendants charged. Subpoenas were issued to Walz and Attorney General Keith Ellison in late January, followed by a contentious House Oversight Committee hearing in early March where they faced accusations of misleading lawmakers on fraud knowledge. No formal charges or indictment have been announced despite congressional referrals and whistleblower accounts, while Minnesota Democrats recently blocked a legislative impeachment resolution. Traders watch for grand jury developments or new evidence that could prompt charges from DOJ or state authorities before any market resolution date.