Axios Twin Cities

January 06, 2026
Good morning! So much for easing into a new year of news.
Fog and some lingering freezing rain this morning, per NWS. After that it will be cloudy with a high of 34.
🎂 Happy birthday to our Axios Twin Cities member Regina Burstein!
Today's newsletter is 1,123 words — a 4-minute read.
1 big thing: Inside Tim Walz's dramatic political fall
Tim Walz was nearly elected vice president in 2024.
- Just 14 months later, he ended his bid for a third term amid a fraud controversy, personal burnout and feuds with former allies — including Kamala Harris.
Why it matters: It's a stunning downfall for a man who vaulted onto the national stage less than two years ago and had been flirting with a 2028 run for president.
Driving the news: Walz announced his decision yesterday, saying that a campaign would distract him from being effective in his last year in office.
- His move came amid increasing scrutiny of alleged fraud in social services programs — and a barrage of attacks from the Trump administration — that led some anxious Democrats to question whether he could win.
What he's saying: Walz defended his administration's efforts to address fraud in his announcement, as he criticized Trump and his GOP allies for "playing politics with the future of our state."
- Top DFL officials, including Senate Majority Leader Erin Murphy, praised him for modeling "selfless" servant leadership.
How we got here: Folksy zingers and progressive policy wins achieved during the DFL trifecta catapulted Walz onto the Democratic presidential ticket in the summer of 2024.
- But the harsh national spotlight brought new attention to embellished aspects of his biography and a penchant for gaffes.
- After losing the race, he had a falling out with Lt. Gov. Peggy Flanagan. He and Harris spent the past year playing a subtle blame game.
A source close to Walz pushed back against the idea that stumbles during his vice presidential bid impacted his political prospects, pointing to crowds he drew at events in early 2025, but acknowledged his heightened profile made him a target for the right.
- "He's in the crosshairs of the White House and the entire right wing media ecosystem while trying run a local race," the source said. "It's impossible to fight back against endless attacks from the federal government while also running a campaign."
2. Zoom in: How it happened
After returning from the trail, Walz wrestled for months over whether to seek a third term, even as he took steps to maintain his national profile.
- The national campaign and six years of governing through crisis, including the COVID-19 pandemic and the murder of George Floyd, had taken a toll.
- And a closely divided Capitol created more difficult political dynamics.
Then in June, the murder of Speaker Emerita Melissa Hortman, an ally and friend whom he saw as a potential successor, left him deeply shaken.
- "It had a big impact on him," House DFL Leader Zack Stephenson, a close friend of the Hortmans, told Axios. "I saw him many times this summer, and he was clearly grieving very, very deeply."
Walz's vulnerabilities attracted a crowded field of GOP challengers, even before he'd made up his mind. Polling showed a dip in support.
- Still, his backers maintained that his record, fundraising and reputation as a foil to Trump made him the party's best bet for 2026 — especially if it helped Democrats avoid a messy primary.
By September, he'd agreed to run.
Friction point: The fraud scandal, which had dogged Walz for two terms, continued to spiral, as new allegations about additional programs emerged.
- Walz paused payments, canceled a housing program, and announced audits of others. But headlines and political pressure continued to mount.
- "I would be at events, and Democrats would come up to me and tell me that they thought that Walz was going to have a really difficult time getting reelected," DFL Rep. Tina Liebling told Axios.
Reality check: As recently as late November, Walz brushed off reports of nervous Democrats as a distraction. He continued to send fundraising emails through the end of the year.
- But after huddling with his family and close advisors over the holidays, he decided to step aside.
On Sunday evening, aides announced a news conference for the following morning. By 8am Monday, he was out of the race.
3. All eyes on Klobuchar
U.S. Sen. Amy Klobuchar is seriously weighing a run for governor, sources tell Axios.
Why it matters: The four-term senator — one of the state's highest-profile and most popular Democrats — would be an instant frontrunner.
State of play: Klobuchar and Walz met privately over the weekend, and someone registered several domain names for an eventual campaign.
What we're watching: Whether Klobuchar's entry, which is expected to deter many other prominent Democrats, causes any Republicans to reconsider.
- Several GOP candidates signaled yesterday that their plans haven't changed.
- "If Democrats think they can sweep Minnesota's fraud scandal away by swapping out Tim Walz, they are wrong," House Speaker Lisa Demuth said.
4. The Spoon: ICE sending 2,100 more agents
ICE is sending an additional 2,100 agents to Minnesota to focus on investigating fraud allegations. (KARE 11/NBC News)
📺 Main Streets Sports, which broadcasts Wolves' and other NBA teams' games under the FanDuel Sports name, has missed January payments to several NBA teams as the company attempts to complete a sale before a potential shutdown of its business. (Sports Business Journal)
- The Wolves collect nearly $25 million a year from the rights, per SPJ.
🏡 The family that owns former Vice President Walter Mondale's childhood home in Elmore is trying to get it on the National Register of Historic Places. (MPR News)
5. ⛸ We tried it: Minnesota's new forest ice skating trail

👋 Audrey here! I took a trip to Northland Arboretum in Baxter to try a unique spin on a classic winter activity: forest ice skating.
What to expect: The ice-covered path is around 0.5 miles long and winds through an open field and forested areas. Staff at the arboretum believe it's the first of its kind in Minnesota, though Warroad, Edina and Maple Grove have variations.
- The experience is more like lake skating than rinks — the ice can be bumpy, and small "hills" throughout may prove tricky for newer skaters. Helmets are strongly encouraged.
Audrey's thought bubble: I couldn't even stand up on skates, but the born-and-raised Minnesotan I brought along had a great time.
- However, we did drive 2.5 hours for a trail that took him five minutes to complete.
Details: Skating access is included with arboretum admission ($10 ages 15 and up, $5 ages 2-14).
Check our Instagram later today for a video.
🏋️♂️ Kyle is kicking off the year by taking on a new YouTube workout challenge. Pray for his glutes.
📻 Torey will be talking Walz on WCCO Radio at 10:35am.
🍸 Audrey is going on a "bar crawl" for non-alcoholic beverages.
🩺 Nick is anxiously awaiting Thursday's premiere of "The Pitt" Season 2.
This newsletter was edited by Lindsey Erdody.
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