Leaders in Minnesota are reacting Monday morning to Gov. Tim Walz's announcement that he is dropping his bid for reelection as governor.

Walz ended his run for an unprecedented third consecutive term as governor after reevaluating his campaign over the holidays with his family and his team. He faces intense criticism over his response to a massive Medicaid fraud scandal, which has cost the state as much as $9 billion, according to a top prosecutor. 

Though he has repeatedly said that he is working to prevent fraud in the future, Walz added that "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." 

"Tim Walz is a remarkable leader, and Minnesota has benefitted immensely from the compassion he brought to his decades of public service," said Minnesota Attorney General Keith Ellison.

Ellison noted that the two of them have had similar paths to public office: they were elected to Congress in the same year, and both were elected to statewide office in 2018.

"It has been an honor to call Tim my governor, my colleague, and my friend, and I am extremely grateful for all he has done on behalf of Minnesota," Ellison said.

Republican Representative and U.S. House Majority Whip Tom Emmer, on the other hand, simply said: "Good riddance."

The Republican Governors Association said that "Walz's failed leadership is emblematic of Minnesota Democrats' agenda and whoever Democrats choose to replace Walz with at the top of the ticket will need to defend years of mismanagement and misplaced priorities."

Lt. Gov. Peggy Flanagan said Walz has "led with decency and compassion" throughout his tenure as governor.

"Today's decision reflects who he has always been - someone who puts Minnesotans first. I am proud to call him a friend and proud of all the work that has been done to make Minnesota the best place to raise a family," Flanagan said.

The Minnesota DFL Party chair, Richard Carlbom, issued a statement Monday, saying Walz and his wife, Gwen, have "served Minnesota with a deep commitment to servant leadership."

"We're grateful for the years Governor Walz has spent in public service delivering for Minnesotans as a public-school teacher, National Guardsman, member of Congress, and as our Governor. We respect his decision to not seek a third term. True to form, he is choosing to spend the remainder of his term focused on governing, improving lives, and standing up for Minnesota," Carlbom added.

Zack Stephenson, the leader of the DFL in the Minnesota House, said Walz has been "an exceptional public servant, and he deserves our gratitude."

"Governor Walz led our state ably through COVID-19 and the murder of George Floyd, two of the most difficult moments in our state's history. He signed balanced budgets, worked to find compromise in divided government, and — working with Melissa Hortman and Kari Dziedzic — signed historic legislation into law in 2023 that will benefit Minnesotans for generations to come," Stephenson said.

Senate Republican Leader Mark Johnson said Walz's announcement "changes nothing for the 2026 campaign."

"Minnesotans deserve better than four years of abysmal Democrat leadership, billions in fraud, new taxes, more regulation, and a complete lack of accountability. Senate Republicans have been working every day to bring needed balance and accountability to state government," Johnson said. "We need a partner in the Governor's office who is willing to hold people accountable, put Minnesotans first, and will implement common sense policies that will make our state a better place to live, work, and raise a family. Today's announcement only changes the players on the field, not the game, and Minnesotans are tired of the games being played by Democrats."

Minnesota Speaker of the House Lisa Demuth, who is running as a Republican in the gubernatorial race, says change in the state can only come "with a Republican governor."

"If Democrats think they can sweep Minnesota's fraud scandal away by swapping out Tim Walz, they are wrong," Demuth said. "Every Democrat in Minnesota has spent years enabling criminals who stole our tax dollars, with still no meaningful accountability and no end in sight to the billions in fraud that still plagues nearly every government program imaginable thanks to 16 years of Democrat control." 

Senate Majority Leader Erin Murphy said she appreciated that Walz "recognizes the political moment we're facing."

"The threats posed by the Trump administration were already dire, and now that he has weaponized his entire government against our state, they are existential. Minnesotans aren't having it," Murphy said.

Democratic U.S. Sen. Tina Smith applauded Walz's decision to step down, saying he "put the interests of the people before politics."

"Tim's career has been defined by getting results for Minnesotans, doing the right thing, and always putting people first," Smith said. "In the face of an unprecedented and coordinated attack on Minnesota by President Trump and his administration, the Governor is once again doing the right thing. I'm grateful for Governor Walz's service and I will always support him." 

No Democrat has officially announced that they're running in Walz's place, though sources say that Sen. Amy Klobuchar is "seriously considering" it. 

This story will be updated.