Klobuchar, Demuth Clash Over Minnesota Fraud Scandal in Gubernatorial Debate

Democratic Sen. Amy Klobuchar and Republican state House Speaker Lisa Demuth traded barbs over Minnesota's extensive fraud scandal during their first debate, a key issue in the race to succeed Gov. Tim Walz.

The debate centered on a sprawling welfare assistance fraud scheme that emerged during the pandemic, which has implicated hundreds of millions, and potentially billions, in taxpayer dollars from federal and state programs. Governor Walz has taken responsibility for the scandal and announced he will not seek re-election in 2026.

Demuth, seeking to become the first Republican to win the governorship in two decades in the typically Democratic-leaning state, repeatedly directed the conversation toward the fraud. She aimed to link Klobuchar, a three-term senator, to Walz's administration.

"We have allowed a culture of waste and fraud to go on far too long and we can’t keep going this way," Demuth stated, questioning Klobuchar's actions. "Klobuchar, referring to Walz, said, 'I have been very clear. I would have caught that fraud. I would have done something about it. We have very different backgrounds.'"

Demuth pressed Klobuchar on her response, asking, "You could have reached out to the governor and said I think we have a problem in Minnesota... Why didn't you do more." She also questioned Klobuchar's attendance at hearings concerning the fraud, stating, "Why weren’t you at the hearings about fraud in your own Senate Judicial Committee hearing when we had Minnesotans who were concerned about fraud."

Klobuchar countered by detailing her actions after the fraud became public. "The minute that the fraud went public, I did something that was real..... I called the justice department and asked for more resources," she said, asserting that her outreach led to increased federal prosecutor involvement in the investigation.

Addressing the criticism about missing hearings, Klobuchar stated, "I’ve been at a dozen hearings where I’ve raised or asked questions about fraud. The particular hearing that was raised here was a subcommittee that I was not even on."

Demuth also pledged to dismiss state commissioners to create a fresh start following the scandal. "We must recognize that our healthcare costs have exploded across the country and in Minnesota because of the Affordable Care Act," Demuth said, criticizing Klobuchar's support for the legislation as contributing to rising healthcare costs.

The candidates also debated issues including gas prices, paid family and medical leave, and efforts to cap insulin costs. Both Klobuchar and Demuth agreed on tax policy, with Demuth stating, "Tax hikes are absolutely off the table for me," and Klobuchar affirming, "I’ve made clear I’m not going to increase taxes."

Klobuchar launched her gubernatorial campaign in January, three weeks after Walz, who was the Democratic vice presidential nominee in 2024, announced he would not seek re-election. Klobuchar, first elected to the Senate in 2006, previously served as Hennepin County attorney. Demuth was first elected to the Minnesota House in 2018 and has served as speaker since early 2023.