HELLO 2026
If you’re a new subscriber since 10PM Central last night – welcome to the morning take – launched in 2015 as the tip sheet of record for Minnesota politics, and business. We publish multiple times a day – our goal is to make you a little smarter.
We begin 2026 with breaking news, this morning Gov. Tim Walz will meet with his staff, and campaign team. He’ll then address the media at 11AM. All signs are that he is not running for re-election. More on what it means below.
There are 301 days to the general election, there are 218 until the August 11th primary – 29 days until the February 3rd caucuses.
Rep. Nolan West is recovering from a concussion following a car accident, but he says he’s “more or less fine.” SEE: https://fluence-media.co/4jpSPP3
Tariffs are raising costs for hockey rink renovations by thousands of dollars. STRIB: https://fluence-media.co/49fPmOk
Besides paid leave, several other new laws took effect in Minnesota on Jan. 1. KSTP: https://fluence-media.co/4pjULtx
DEED Commissioner Matt Varilek discussed the state’s new paid leave program on Sunday Take. LISTEN: https://fluence-media.co/3NuT7Ig
Blois - tips: bloisolson@gmail.com
The latest MNSider Fluence Brief – What does President Trump saying “Mike Lindell deserves to be Governor.” mean to the GOP race. READ: https://fluence-media.co/48R7fnM
Health Care will remain a top issue into 2026, the State of Health Care Fluence Forum panels from last week are now available in podcast form. LISTEN: https://fluence-media.co/FluenceForumPodcast
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The latest insight from Fluence Advisory on the loss of institutional knowledge from the Minnesota Legislature. READ:https://fluence-advisory.com/insights/
HERE WE GO
TAKE: You could feel it coming the past couple weeks, but Minnesota also outperforms in political theatre. The 2026 cycle is off to a fast start, but Governor’s races take time to develop, and the anticipated drop out of Gov. Tim Walz is a development.
For the DFL, his early drop suggests he knew it was over, and party people likely told him. He met with Sen. Amy Klobuchar on Sunday, that was likely the final conversation – which begs the question, will Sen. Klobuchar run. That’s the next move DFLers AND Republicans are anticipating. She doesn’t have to give up her Senate seat. She is the strongest DFLer, but others are hoping for a more generational turnover, and progressive and DSA-aligned DFLers will not go away quietly.
For the GOP, they had privately said they were worried that the tsunami of fraud coverage would force Gov. Tim Walz from the race. Now they will wait and see who from the DFL will run. Meanwhile, they have a very competitive race of their own to be concerned about.
Names that get buzz the preferred “field clearer” is Sen. Amy Klobuchar. From there fmr. Congressman Dean Phillips, current Rep. Kelly Morrison, Sen. Maj. Leader Erin Murphy, and Sen. Nick Frentz. Expect a DSA-aligned candidate to get into the race.
There will be plenty of more time this week for analysis, and insight. Follow along on X @bloisolson, at WCCO Radio and on Fox 9.
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FROM DC
HEARINGS: via CNBC, VERBATIM: “Congressional Republicans [have] called Minnesota Gov. Tim Walz to testify amid an ongoing social services fraud scandal. … House Oversight and Government Reform Chair James Comer, R-Ky., invited Walz and Minnesota Attorney General Keith Ellison, both Democrats, to appear before the panel on Feb. 10. … An earlier hearing, slated for Jan. 7, will feature Minnesota state officials.” READ: https://fluence-media.co/3N5u12C
MORE: Via MPR News, GOP Reps. Kristin Robbins, Marion Rarick and Walter Hudson will testify before the U.S. House oversight committee Wednesday, Jan. 7 during a hearing on fraud in Minnesota. READ: https://fluence-media.co/4pobcoK
NOTE: Fox 9 started coverage in 2013 via reporter Jeff Baillon. Here’s a timeline of coverage through the years. READ/WATCH: https://fluence-media.co/3NuxeJ9
MORE: KSTP first reported on investigations into Minnesota childcare centers nearly a year ago, as seen in morning take on Jan. 29, 2025. READ/WATCH: https://fluence-media.co/3KSjlnt
CONSPIRACIES
HORTMAN: via Bring Me The News, VERBATIM: “The children of Melissa Hortman have called on President Donald Trump to remove posts shared on his Truth Social account that promoted false conspiracy theories about their parents’ assassinations. … Colin and Sophie Hortman issued a statement [after] the president shared a post falsely linking their parents’ assassinations to a vote Melissa Hortman took.” QUOTE: “I am asking President Trump to remove the video that he shared and apologize to me and my family for posting this misinformation and for using my mother’s own words to dishonor her memory.” READ: https://fluence-media.co/45raJLm
RESPONSES: The president’s posts about Melissa Hortman received condemnation from many state officials, including DFL Rep. Zack Stephenson, GOP Sen. Julia Coleman, and the family of Sen. John Hoffman. The claims shared by the president were debunked last year by prosecutors at the Department of Justice.
STEPHENSON: “Melissa Hortman didn’t have any patience for politicians who couldn’t speak the truth even when it was politically difficult. Minnesotans shouldn’t either.” READ: https://fluence-media.co/4aESyp5
COLEMAN: “We must all reject this behavior outright and refuse to tolerate it. … Fight for what you believe in. But do not speculate, guess, or spread stories that are plainly false and deeply harmful.” READ: https://fluence-media.co/49hvUAD
HOFFMANS: “We ask President Trump to take down the post spreading conspiracy claims. … Those claims reflect the same hateful falsehoods that motivated violence and cause more harm. This moment calls for responsibility and compassion.”
(DISCLOSURE: Fluence Advisory is providing media support for the Hoffman family)
VENEZUELA
VENEZUELA: Via KSTP, Minnesotans had mixed reactions to U.S. military action in Venezuela this weekend that saw the nation’s capital bombed and its president captured. VERBATIM: “‘We are celebrating this day,’ said Soleil Ramirez, a Minneapolis chef and restaurant owner who fled Venezuela 10 years ago. … While Ramirez and her family celebrated, others were enraged. Protesters in south Minneapolis organized against U.S. military action in Venezuela and questioned President Donald Trump’s motives for the overnight operation and his stated plans to ‘run the country.’” READ/WATCH: https://fluence-media.co/4pmWUVk
RESPONSE: via a Rep. Ilhan Omar statement, OMAR: “[Pres. Donald] Trump’s invasion of Venezuela is blatantly illegal and unconstitutional. He has no authority to deploy U.S. forces into foreign countries to bomb them, capture heads of state, and overthrow governments in regime-change wars. … As Congress returns to session this week, we must vote on a War Powers Resolution, so that the people’s elected representatives can have an open debate and vote on the merits of a war against Venezuela.” READ: https://fluence-media.co/3YUa7ds
MORE: Rep. Tom Emmer spoke to Fox News yesterday about the U.S. military action in Venezuela. EMMER: “It was the capture of someone who was an illegitimate ruler. He stole an election, so he wasn’t even supposed to be there. … This was a really important move by the Trump Administration, and our colleagues on the other side of the aisle — for once, they should stand with the American people instead of just spewing their hatred for our president.” WATCH: https://fluence-media.co/4jqt4y4
CLEAN | RELIABLE | AFFORDABLE: via Xcel Energy, VERBATIM: “We’re powering the Upper Midwest with clean, reliable, and affordable nuclear energy. For more than 50 years, our Prairie Island Nuclear Plant, located near Red Wing, MN, has been a workhorse of reliable, carbon-free energy. With two pressurized water reactors producing about 1,100 megawatts, Prairie Island generates enough electricity to power 1.5 million homes across the Upper Midwest. Unlike sources that depend on weather, nuclear energy delivers 24/7 reliability — providing the power we need today while protecting the environment for tomorrow.” LEARN MORE: https://fluence-media.co/4oCHdK9 (SPONSORED: Xcel Energy)
THE FEED…
GOV RACE: via KAAL-TV, VERBATIM: “State Representative Peggy Bennett of Albert Lea will hold a press conference Monday, Jan. 5, to discuss her decision to run for Governor of Minnesota. … Bennett [is] a former teacher and longtime representative. … Bennett said she had not taken the decision to enter the race, which has candidates numbering in the double digits, lightly.” BENNETT: “I have been planning this for months. I am entering this race because I believe I’m different and will be an effective leader to get things done for this state.” READ: https://fluence-media.co/3N2PYzn
MORE: Republican candidate for governor Kendall Qualls spoke to WCCO-TV yesterday about his campaign priorities and why he thinks he can win. READ/WATCH: https://fluence-media.co/45qIV9Y
WALZ: via Wall Street Journal, VERBATIM: “The massive welfare-fraud scandal in Minnesota dogging Gov. Tim Walz as he seeks re-election in a state that has prided itself on good governance is giving Republicans a potent line of attack. … ‘Fraud as an issue will haunt him until November,’ said Blois Olson, a political analyst who publishes a Minnesota politics newsletter. ‘He has not addressed the issue loudly enough, and most people think that he has not taken it seriously enough.’ … The governor declined to be interviewed for this article.” READ: https://fluence-media.co/49CwFWq
SENATE RACE: via The Hill, VERBATIM: “The massive statewide fraud scandal in Minnesota is threatening to become a liability for Democrats in the state’s closely watched Senate race this year. In particular, [it] could be a problem for Lt. Gov. Peggy Flanagan, the second-in-command to Minnesota Gov. Tim Walz. … But Flanagan’s campaign sought to put distance between herself and Walz in a statement to The Hill.” STATEMENT: “Regardless of the attempts being made by Republicans to connect every member of the Democratic Party to fraud – despite the blatant corruption and fraud being committed by the President – the Governor has made it abundantly clear that the buck stops with him.” READ: https://fluence-media.co/49tLf1o
MORE: GOP Senate candidate David Hann criticized Lt. Gov. Peggy Flanagan for saying “Somalis built Minnesota” during a recent local TV appearance, calling on Flanagan to retract her statement. HANN: “This is exactly what happens when gimmick politics replace leadership. I demand that Lt. Governor Flanagan retract her statement and apologize to Minnesotans. … Shame on her.”
CAUCUSES: Precinct caucuses for the DFL endorsement in the state’s U.S. Senate primary begin Feb. 3, and Lt. Gov. Peggy Flanagan published a social media video telling her supporters how to caucus and help her earn the endorsement. FLANAGAN: “This is Minnesota’s Senate seat. It doesn’t belong to giant corporations, crypto, or Big Oil. This is the people’s seat. That’s why the Minnesota DFL endorsement process is so important.” SEE: https://fluence-media.co/49nOqaL
MORE: Lt. Gov. Peggy Flanagan discussed her Senate campaign and party caucuses on WCCO-TV yesterday. WATCH: https://fluence-media.co/3NsV87P
SOS RACE: via Wendy for SOS, VERBATIM: “Wendy Phillips announced her bold campaign for Minnesota Secretary of State. … Phillips, a longtime business owner, grassroots advocate, and St. Paul outsider, will seek the Republican endorsement for the state’s chief election official. … She will push for voter identification, cleaning the voter rolls, and shutting down businesses that are ripping off the taxpayers.” WEBSITE: https://fluence-media.co/4aFJKzj
SD34: via WCCO-TV, VERBATIM: “State Sen. John Hoffman of Minnesota has announced he is running for reelection. … He was first elected to the seat in 2012 and has been reelected three times since. … According to Sen. Hoffman, he is seeking reelection to ‘keep leading with dignity.’” HOFFMAN: “Minnesotans are tired of the vitriol. We have seen first hand where hate and dehumanization can lead. My family survived it. Decency matters.” READ/WATCH: https://fluence-media.co/4sHrn3F
SD3: Babbitt Mayor Andrea Zupancich announced a run for Senate District 3 as a Republican. ZUPANCICH: “Increased taxes and increased fees are putting pressure on family budgets. … We deserve so much more than a Senator who’s become a rubber stamp for the far-left, metro agenda.” WEBSITE: https://fluence-media.co/4pp4oHs
56B: Procurement manager Andrew Hattaway will run for House District 56B as a Republican. HATTAWAY: “I believe in smart, responsible spending that protects your tax dollars and stops fraud before it harms our communities. I believe in strong local schools where every child has the support they need to succeed. And I believe every family deserves access to affordable, reliable healthcare.” WEBSITE: https://fluence-media.co/4suVvPy
PROBE: via AP News, VERBATIM: “Minnesota’s Department of Children, Youth, and Families said it has until Jan. 9 to provide information about recipients of [federal childcare] funds [to] the Trump Administration. … The state agency added that it ‘did not receive a formal communication from the federal government until late Tuesday night.’” READ: https://fluence-media.co/4sr3fSm
EMMER: via WCCO-TV, VERBATIM: “In a post to Facebook [last week], Congressman Tom Emmer wrote, ‘I’m calling for the denaturalization and deportation of every Somali engaged in fraud in Minnesota. … If they’re here illegally, deport them immediately; if they’re naturalized citizens, revoke their citizenship.’ … Hamline University political science professor David Schultz [said] deportation of citizens would require a change in the Constitution. … ‘What he said was basically a violation of the U.S. Constitution and U.S. constitutional law,’ Schultz said.” READ/WATCH: https://fluence-media.co/3Let47E
LOANS: via Star Tribune, VERBATIM: “The U.S. Small Business Administration (SBA) is suspending almost 7,000 Minnesota borrowers over ‘suspected fraudulent activity’ and blocking them from all other loan programs. … SBA Administrator Kelly Loeffler [said] the agency identified the borrowers during a review of potentially fraudulent pandemic-era loans. … No charges have been announced.” READ: https://fluence-media.co/4bo2Aem
PAYMENTS: via MPR News, VERBATIM: “DHS announced it has officially started an audit process where health care company Optum will review payments before they are processed to [certain] providers. … John Connolly, the state Medicaid director, said his team is doing this to protect the integrity of Medicaid. … But this extra step could lead to delays, Connolly warned. Some claims could take longer than 30 days to resolve, but Connolly promised that the state will pay all legitimate claims [in] 90 days. … Some Minnesota providers have voiced concerns that their business won’t be able to survive if these payments are delayed.” READ: https://fluence-media.co/4pgxl8s
SOMALIA: via Star Tribune, VERBATIM: “In mid-November, a little-known conservative website published an explosive claim: Al-Shabab, an Islamic terrorist group active in Somalia, was being funded by millions of dollars stolen from Minnesota taxpayers. … But a core source for the article now calls the story ‘bullshit’ and claims he was misquoted. Another person cited in the piece is distancing himself from the reporting. … The City Journal writers say they stand by the story.” READ: https://fluence-media.co/4pgaVEs
GROUP HOMES: via MPR News, VERBATIM: “A company that federal prosecutors claim was used to launder money for the Feeding Our Future fraud scheme owns properties throughout the Twin Cities where taxpayer-funded group homes operate. GAK Properties LLC owns at least five houses that function as group homes for Minnesotans with disabilities. Federal prosecutors allege that Gandi Abdi Kediye used the same company to launder nearly $1 million. … The group homes, three of which are managed by Kediye’s wife, have billed the state for millions of dollars. … His wife, Samsam Mohamed, was not [charged]. Because of that, [officials] say they have no legal basis to take action against the group homes.” READ: https://fluence-media.co/3Lkpedb
BUSINESS EXCELLENCE: Flint Hills Resources was just awarded the 2025 Large Business of the Year award from the Dakota County Regional Chamber of Commerce at their annual Business Excellence Awards celebration. The award celebrates the outstanding achievements of businesses that exemplify the thriving and growing spirit of Dakota County. The businesses honored make an impact and contribute to the continued success of our community. LEARN MORE: https://fluence-media.co/46lTpIs (SPONSORED: Flint Hills Resources)
STATE + LOCAL
PAID LEAVE: via MPR News, VERBATIM: “Nearly 12,000 people have applied for paid family and medical leave [in] the first couple days of the program’s rollout. … The program went live a day ahead of schedule on Wednesday, and officials running it said it’s gone off without a hitch so far. … As of Friday, about half of those applications had been processed by state officials. … DEED has run the numbers and expects to approve about 130,000 leave claims of all kinds during this first year.” READ: https://fluence-media.co/4aIx7Dv
RURAL HEALTH: via MDH advisory, VERBATIM: “The Minnesota Department of Health (MDH) will be awarded more than $193 million for rural health care across our state. This first year of Rural Health Transformation Program (RHTP) investments from the Centers for Medicare & Medicaid Services (CMS) includes base funding distributed to approved states as well as significant additional funds recognizing Minnesota’s [plans] to stabilize and strengthen health care delivery in rural communities.” READ: https://fluence-media.co/4bhl5RG
MANUFACTURING: via MPR News, VERBATIM: “A recent survey of manufacturing managers across nine Midwest states, including Minnesota, showed the region’s business conditions index fell below growth-neutral for the fourth time in the last six months. … ‘Exports have declined fairly significantly with tariffs,’ said Ernie Goss, an economist at Creighton. … In Minnesota, manufacturing exports for the first three quarters of 2025 declined 13.5 percent year over year, from $19 billion in 2024 to $16.4 billion in 2025.” READ: https://fluence-media.co/3NdsRSF
POT: via OCM advisory, VERBATIM: “Governor Tim Walz and the Office of Cannabis Management (OCM) announced the signing of a new Tribal-state cannabis compact. … The agreement provides a blueprint for a shared goal of safeguarding the health of Minnesotans regarding adult-use cannabis while securing sovereignty and preserving self-sufficiency for the Bois Forte Band. … The state expects to announce additional Tribal-state cannabis compacts soon.” READ: https://fluence-media.co/4q7kJ51
ST PAUL: via City of St. Paul, VERBATIM: “Saint Paul Mayor Kaohly Her took the oath of office and participated in a public ceremonial inauguration [Friday] afternoon. … Mayor Her will share an initial list of appointments and staffing structure on Monday morning as she enters her first week in office.” HER: “We have great opportunities ahead of us to build a better Saint Paul, which is more resilient and prosperous for all. I made this commitment to you on Election Night, and I hope in the two months since you’ve seen it to be true: I will always show up.”
ELY: via MPR News, VERBATIM: “The Minnesota Department of Natural Resources has given the go-ahead to additional underground mineral exploration near Ely, just outside the Boundary Waters Canoe Area Wilderness, despite opposition from some environmental groups. The plan allows Franconia Minerals, a subsidiary of Twin Metals Minnesota, to drill exploratory borings. … Twin Metals [has] just over two years to complete the exploratory work.” READ: https://fluence-media.co/49oXOem
GREATER MN: MinnPost published two stories about how Somali people in Greater Minnesota are handling increased attention and scrutiny in their own communities following ICE surges and fraud scandals largely concentrated in the Twin Cities metro. READ: https://fluence-media.co/45x3mlx https://fluence-media.co/3Ykg97b
AHEAD
TODAY: At 11, Gov. Tim Walz will hold a media availability to discuss “news of the day.”
TODAY: Minneapolis Mayor Jacob Frey will be sworn in for his third term today.
WEDNESDAY: GOP Reps. Kristin Robbins, Marion Rarick and Walter Hudson will testify before the U.S. House oversight committee during a hearing on fraud in Minnesota.
WEDNESDAY: The Advisory Committee on Capitol Area Security is scheduled to meet at 2:00 p.m. with an unannounced agenda.
THURSDAY: Axios Live will host conversations with Speaker Lisa Demuth, Senate Majority Leader Erin Murphy, and UnitedHealth Group VP Margaret-Mary Wilson regarding the future of public health. The event is in Eden Prairie at 9:30 a.m.
THURSDAY: The Economic Club will host a luncheon with Treasury Sec. Scott Bessent in Golden Valley at 11:00 a.m.
JAN 14: Clean Elections MN will host a webinar with Sec. Steve Simon and Atty. General Keith Ellison discussing “what’s being done to keep our elections safe, fair and secure,” per a release. The event is at 7:00 p.m.
BDAYS: today fmr. Sen. Christine Eaton, St. Paulite Beth Commers – a few belated include Hennepin County Sheriff Dawana Witt, fmr. morning take writer Luke Kolar, fmr. Twins President Dave St. Peter, Rep. Jeff Backer, Twins scribe Aaron Gleeman, Blaze CU’s Tim McNiff, insurance leader Adam Axvig, fmr. Rep. Jeremy Kalin, DOC’s Sara Barrow, business leader Jay Ettinger
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IN MEMORIAM: morning take from now to the future is in memory of Melissa Hortman her accessibility, leadership and commitment to public service.
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