'Buck' stops at Walz: Flanagan blames Minnesota ducks on fraud as GOP challenger exposes apparent contradiction

Republican candidate Michelle Tafoya blasted Democratic Lt. Gov. Peggy Flanagan over Minnesota's $9 billion fraud scandal during her debate.

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Michelle Tafoya, a Republican candidate for the U.S. Senate in Minnesota and a former TV talk show host, tried hard to put her rival, Democratic Lt. Gov. Peggy Flanagan, on the defensive Friday afternoon in a debate over the billion-dollar fraud schemes that drew national attention to the state earlier this year.

Early in the debate, Tafoya pressed Flanagan on his qualifications for the federal post, citing his record as lieutenant governor.

"My opponent has been second in the state for eight years and gets a taxpayer-funded paycheck. And what do we have to show for it? We have widespread cheating, historic cheating. We have lowered test scores. We have increased crime. We have a huge surplus that has turned into a deficit," Tafoya said.

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Local and federal investigators have uncovered countless fraud schemes involving daycare centers, meal programs, health clinics and other operations accused of defrauding the state of up to $9 billion. Investigators say the scammers either inflated the number of people they allegedly helped or falsified their services altogether — all while receiving government dollars.

When the issue came up later in the debate, the host asked Flanagan directly if he thought he "owned the scam."

Flanagan then distanced himself from the issue and pointed to Walz's acknowledgment that he was responsible for oversight.

"The governor has made it very clear that the buck stops with him," Flanagan said.

"He's been the one to oversee this. I've led on issues like paid family and medical leave, the nation's leading child tax credit, making sure kids get breakfast and lunch at school. Those are the things and those are the areas that I've led on."

When Flanagan then steered the conversation toward criticism of President Donald Trump, Tafoya lashed out.

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Minnesota Lt. Gov. Peggy Flanagan visited a hijab-wearing Somali market in December alongside Nimko Ahmed, who runs an autism center now under investigation. (Somali Minnesota TV)

"Peggy, Donald Trump is not on the ballot. You and I are on the ballot, and only one of us let $9 billion slip through the fraud window to suggest to us that he's suddenly going to be a fraud czar," Tafoya said.

He added: "My God, he was the second in command in this state and when he wants to be in the room where it all happened, he just points the finger at Gov. Tim Walz. But all of a sudden he has nothing to do with it. Sell it to somebody else."

Flanagan has served as Minnesota's lieutenant governor for nearly eight years, starting in 2019. Flanagan had already announced his bid for the U.S. Senate when Walls announced that he would not run for re-election as governor amid political investigations for fraud.

In response to Tafoya, Flanagan doubled down on his criticism of Trump, noting that the president has recently endorsed Tafoya.

"Donald Trump doesn't endorse just anybody. In fact, he endorses against people in his own party if they dare to accept him. Michelle Tafoya passed her litmus test with flying colors," Flanagan said.

Tafoya then laid out his proposals to combat fraud, including tougher consequences for non-citizens who defraud Americans.

"No. 1, if you're a guest in this country and you're defrauding Americans, you need to go. You need to go and there's no going back," he said.

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Michelle Tafoya, Republican candidate for U.S. Senate, votes in the primary election at Shepherd of the Hills Church in Edina, Minn., Aug. 11, 2026. (Lila Navidi/The Minnesota Star Tribune)

"No. 2, if you're an American and you're defrauding your fellow Americans, we need to talk about mandatory prison minimums. Tough sentences, not an easy slap on the wrist.

"And No. 3, if you're a state like Minnesota that can't keep its fiscal house in order, why is the federal government releasing billions and billions of dollars for you to watch as a fraud?"

After securing their respective parties' nominations earlier this year, Flanagan and Tafoya will face off in the Nov. 3 state general election.

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