Former Minnesota Governor Tim Pawlenty Labels State Fraud Scandal a “Debacle” of Years of Ignored Warnings

By James Morley III | Tuesday, 30 December 2025 10:56 AM EST

Former Minnesota Gov. Tim Pawlenty sharply criticized the state’s current leadership during an appearance on Newsmax’s “Wake Up America,” calling an ongoing fraud scandal a “debacle” driven by years of ignored warnings and reckless mismanagement.

Pawlenty said what was once known as “Minnesota Nice” has become “Minnesota incompetence,” arguing that Gov. Tim Walz bears responsibility as the state’s chief executive. While Pawlenty stated he does not believe Walz should resign, citing concerns about the lieutenant governor succeeding him, he urged Walz to reconsiders his bid for a third term.

The former governor highlighted repeated warnings from nonpartisan legislative auditors dating back to 2017 and 2018, along with whistleblower reports and internal emails, as evidence that problems were known within the administration for years.

Pawlenty also disputed Walz’s assertion that he lacks sufficient authority to address the situation, emphasizing the governor already has the legal power to implement stronger oversight and financial controls.

“We can’t just put more money into Minnesota without doing a bunch of investigations and reviews and maybe holdbacks, and that’s going to hurt my state. And it’s another consequence of this very, very unfortunate situation,” Pawlenty said.

According to Pawlenty, federal investigators believe the fraud could reach as much as $9 billion, with probes expanding to examine where the money went—including possible political contributions and overseas transfers.

He noted public anger is widespread, citing polling that shows nearly 70% of Minnesotans believe the administration failed to prevent the fraud.

“This is a major political and policy earthquake in my state,” Pawlenty said.