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WATCH: Top 3 clashes in heated MN governor debate as Walz's legacy looms large: 'Change the culture'

The Republican and Democratic candidates vying to replace Minnesota's outgoing Gov. Tim Walz sparred in their final debate Wednesday over the massive fraud scandal that has unfolded in the state, healthcare and rising gas prices.

MASSIVE FRAUD SCANDAL

"A vote for Amy Klobuchar is a vote for a Tim Walz third term," Republican House Speaker Lisa Demuth said in her opening statement after painting Democratic Sen. Amy Klobuchar as the "status quo" candidate in a "state in crisis" over the $9 billion fraud scandal.

Klobuchar pushed back in her opening statement, saying, "I don't like the status quo. I hate the status quo."

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The first question of the debate focused on fraud, a recurring topic throughout the night, and what each candidate would do to combat it.

"Fraud unchecked here in the state of Minnesota has gone far too long, and it has finally come to the surface," Demuth said. "The thing that I will do on day one is I am going to be firing all commissioners, choosing new commissioners that are expert in their field that will carry out the accountability and transparency that is needed in our state. We have to change the culture of fraud."

Klobuchar attempted to distance herself from Walz when addressing the issue.

"The fraud is simply unacceptable and, as a former prosecutor, I'm going to send those fraudsters to jail," Klobuchar said. "Tim Walz should have caught the fraud earlier and he should have done more. He said it himself. And by the way, when my opponent references Tim Walz, I will say one thing. He is not seeking a third term. I am the one up here."

Fraud came up again later in the debate, with Demuth criticizing Klobuchar's close relationship with Walz.

"You have not heard my opponent differ from one policy bill that Tim Walz, who she calls an incredible governor, has allowed to go forward," Demuth said. "I would love to hear one bill, one area, childcare, fraudulent funding. I would love to hear that. If she is separating herself specifically from Tim Walz, Tim Walz allowed the childcare fraud and other fraud here in the state of Minnesota to explode to $9 billion, never firing any of his commissioners or agency employees. But yet you have someone standing here tonight that is supporting everything from the incredible governor, as she has said he is."

Klobuchar responded, "Rewind the tape on this debate please; you will see exactly how I said I differed from Tim Walz."

RISING GAS PRICES

In another tense moment, the candidates turned to rising gas prices, with Klobuchar attempting to link Demuth to the policies of the Trump administration.

"I can tell you the fastest way to bring down your gas prices, and that is to stop this War in Iran," Klobuchar said. "That is it, beginning, middle and end. And when you look at what my opponent brings up, when we had a debate earlier this week, she actually brought up and blamed it on the Keystone pipeline. Then she blamed the healthcare costs on Barack Obama. I don't know what will be next. Maybe Thomas Jefferson, but what I know is that Minnesotans understand what's happened at the pump."

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Demuth blamed high costs in Minnesota on the Minnesota Democratic–Farmer–Labor Party's (DFL) control of state government.

"We can talk about that Keystone pipeline that my opponent has voted against. That would have brought in 830,000 barrels of oil. It would have helped with the supply that we have here, yet she voted against it," Demuth said. "But you have to ask yourself, why are things so expensive here in Minnesota? They are expensive because of overspending by a one-party control in 2023 and 2024. I will bring down prices. I will right-size our state budget and make sure that you can afford your lives, that you can grow, thrive, and businesses will be coming to Minnesota to provide the jobs that are needed. It's common sense, and that's the decision that you have to make as you're looking to this election this year."

HEALTHCARE COSTS AND INSULIN PRICES

As Minnesotans continue to grapple with rising healthcare costs, the two candidates sparred over ObamaCare, which Klobuchar voted for in the U.S. Senate.

"It's important to realize that we're looking at all of the inputs and all of the reasons why our healthcare is more expensive," Demuth said. "Senator Klobuchar supported the Affordable Care Act. She promised that it would bring down our healthcare. Unfortunately, we have seen anything but all of our healthcare since the Affordable Care Act has increased the healthcare cost to all Minnesotans."

Klobuchar didn't address ObamaCare in her response, instead pointing to Demuth's position on abortion and accusing the Republican of being beholden to Big Pharma.

"You've heard from my opponent that, I don't support certain things in healthcare, she's talking about issues that are already settled," Demuth said. "I think it's quite rich to hear the fact that she is the one that broke the healthcare system as the deciding vote on the Affordable Care Act."

During the healthcare discussion, Klobuchar argued that Demuth has not done enough to lower insulin prices and cited the support she has received from the family of Alex Smith, a 26-year-old Minnesotan who died while struggling to afford his insulin treatments.

"Just to clarify a very incorrect or untruthful lie that you just heard was the fact that I did vote yes for the Alex Smith insulin bill," Demuth responded. "Back in April of 2020. The governor signed it into law the very next day."

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Klobuchar, who was first elected to the Senate in 2006, won all four of her Senate elections by healthy margins, including her 2024 reelection by nearly 16 points. Before serving in the Senate, Klobuchar was elected twice as county attorney in Hennepin County, Minnesota's most populous. She also ran unsuccessfully for the 2020 Democratic presidential nomination.

Demuth, who was first elected to the Minnesota House in 2018, has served as GOP leader in the chamber since the start of 2023 and as speaker for the past year and a half.

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'Fire every commissioner': Minnesota GOP nominee vows sweeping purge over fraud

Minnesota's gubernatorial candidates clashed over the state's fraud scandals in their second debate of the week, with Republican House Speaker Lisa Demuth pledging to fire all state commissioners on her first day in office and Democratic Sen. Amy Klobuchar defending her response.

The scandals have rocked the North Star State, raising questions about how large-scale abuse of state programs went undetected and putting government oversight at the center of the governor's race.

"Fraud unchecked here in the state of Minnesota has gone far too long, and it has finally come to the surface," Demuth said.

MINNESOTA’S ANTI-FRAUD SPENDING HAS QUIETLY BALLOONED, LEAVING TAXPAYERS TO PAY FOR FAILURE TWICE

"The thing that I will do on day one is I am going to be firing all commissioners, choosing new commissioners that are expert in their field, that will carry out the accountability and transparency that is needed in our state. We have to change the culture of fraud."

Klobuchar called Demuth's remarks "absurd" and said she contacted U.S. Attorney Andy Luger after the fraud came to light to ask what prosecutors needed.

"He said, 'I need more prosecutors'," Klobuchar said. "I called the highest level of the Justice Department, and I got him those prosecutors."

TIM WALZ SAYS HE TAKES RESPONSIBILITY FOR MINNESOTA FRAUD BY NOT RUNNING FOR RE-ELECTION

Klobuchar also said she would have caught the fraud earlier, while criticizing Walz’s response. "Tim Walz should have caught the fraud earlier, and he should have done more," she said.

She also sought to distinguish herself from the outgoing governor and criticized Demuth for not clearly separating herself from President Donald Trump. "We don't need a rubber stamp of Donald Trump in the governor's office," Klobuchar said.

Demuth countered that Klobuchar had not identified specific policies on which she would break with Walz, whom Klobuchar has called an "incredible governor."

'WE HAVE NOT SLOWED DOWN': MINNESOTA NOT OUT OF THE WOODS ON MASSIVE FRAUD SCANDAL, EXPERT WARNS

Beyond fraud, Klobuchar and Demuth used the debate to draw broader contrasts over the economy, taxes, public safety and the direction of the state. Both candidates have ruled out tax increases, but Demuth has argued Minnesota needs to rein in spending and regulations, while Klobuchar has emphasized lowering costs for health care, housing and childcare.

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Wednesday's debate in Rochester was the candidates' second face off this week and likely their final debate before Election Day on Nov. 3. Republicans have not won a statewide race in Minnesota since 2006.

The race will also make history regardless of the outcome, producing Minnesota's first female governor. A Demuth victory would additionally make her the state's first Black governor.

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MORNING GLORY: Minnesota's massive fraud scandal could deliver a stunning Senate upset

"This historic fraud happened under her watch, and suddenly, she’s looking out for Medicaid and SNAP? Sell it to someone else, Peggy."

With this debate response to Minnesota Democratic Senate nominee Peggy Flanagan’s protestations of concern over access to benefits for the very poor, Republican nominee for Senate Michele Tafoya sealed her status as "rookie of the year" in American politics.

A longtime NFL broadcast professional, Tafoya demonstrated decades of quick on-camera thinking in her debate last week with Flanagan and combined it with a deft slash at Flanagan’s greatest vulnerability: Flanagan’s apprenticeship as lieutenant governor to Minnesota Gov. Tim Walz during the tidal wave of fraud that swept across Minnesota after Covid-era "look-the-other-way" policies became a feature, not a bug, in Minnesota’s vast system of "safety net" programs.

‘BUCK’ STOPS AT WALZ: FLANAGAN DUCKS MINNESOTA FRAUD BLAME AS GOP RIVAL EXPOSES GLARING CONTRADICTION

A federal prosecutor estimated the amount of fraud in Minnesota’s spending at as much as $9 billion — that’s a "b" as in "billion." That is a remarkable sum given the Gopher State’s population of fewer than 6 million souls and an annual budget of about $67 billion. To squander an amount equal to close to 15% of a state’s budget on thieves and con artists is staggering.

That level of corruption forced Walz to drop his planned campaign for re-election and now dogs Flanagan in her head-to-head campaign with Tafoya for the Senate.

WALZ ADMINISTRATION IGNORED FRAUD WARNINGS AS BILLIONS VANISHED, HOUSE OVERSIGHT REPORT ALLEGES

As does the rising fear of gangs of Somali-American youths and the sort of violence that recently stunned suburban Twin Cities voters when a shootout occurred at an Eden Prairie high school homecoming game.

Eden Prairie is a standard-issue affluent suburban town of about 65,000 people. Fewer than 3,000 Somali-Americans live in Eden Prairie, but the gang shootout on October 2 at Aerie Stadium, during Eden Prairie High School’s game against Minnetonka High School, shocked voters across the entire state.

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Tafoya was quick to note that everyone arrested in the incident — which left two youths wounded and crowds quickly evacuated from the canceled game — was out on bail within days. That shootout plus the fraud have dominated Gopher State media coverage of the Senate race this month.

Tafoya’s knockout line — "Sell it to someone else, Peggy" — was a wake-up call for the electorate. Even longtime Democrats in Minnesota are looking around their beloved state and cannot fathom why it has been engulfed in corruption and crime.

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Tafoya would have been a good candidate in any cycle. She’s a terrific one for a midterm statewide campaign when her matchup is among the most watched in the country.

Polls in the race are within the "margin of error," which, to remind readers, means the pollsters conducting the surveys acknowledge it’s a toss-up. There may also be a silent and thus hidden-from-pollsters anti-establishment vote lurking beyond downtown Minneapolis, and the very liberal Democratic-Farmer-Labor Party ("DFL"), Flanagan’s brand, is the establishment in Minnesota.

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The DFL is not the DSA, but Flanagan is most definitely "DSA-adjacent." She is as "woke" as "woke" gets. One obvious "tell": Flanagan has repeatedly branded Israel’s battle against Hamas in Gaza — which was triggered by the terrorist invasion and massacre of Oct. 7 — as a "genocide," which is not only a slander but an exceptionally stupid slander.

The "genocide" slogan is popular among the radicals chanting "from the river to the sea, Palestine will be free," but it’s an "idiot wind," to borrow from Minnesota’s Nobel laureate bard Bob Dylan. To level that charge against the Jewish state should earn whoever utters it an immediate exit from American politics, not a six-year seat in the most powerful legislative chamber on the planet.

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Flanagan isn’t the most radical Democratic nominee of the 2026 election cycle. That is clearly Abdul El-Sayed in Michigan.

But Flanagan is tied with Maine’s Democratic Senate nominee Troy Jackson for the "never going to win the spelling bee" title and with Texas’s Democratic Senate nominee James Talarico for the gold in the "weird" Olympics this fall. (That’s very fitting since Walz popularized calling then-Senator and now Vice President J.D. Vance "weird" in the 2024 campaign.)

Meanwhile, the very smart, very telegenic and very professional and prepared Tafoya has worked and worked every crowd, large and small, across Minnesota with the simple and direct appeal that Minnesota voters deserve better than the hot mess that Walz and Flanagan have left the state in after eight years of hapless indifference to the biggest fraud story in the nation, marching right alongside spiraling violence.

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Minnesota elects Republicans, just not often. Tafoya isn’t in the lead, but she’s certainly very close to scoring the biggest upset of 2026. Why? Because sometimes even liberals get sick of the left when the left imposes enormous costs on their lives and on the safety of their children and grandchildren.

Hugh Hewitt is a Fox News contributor and host of "The Hugh Hewitt Show" heard weekday afternoons from 3 PM to 6 PM ET on the Salem Radio Network, and simulcast on Salem News Channel. Hugh drives Americans home on the East Coast and to lunch on the West Coast on over 400 affiliates nationwide, and on all the streaming platforms where SNC can be seen. He is a frequent guest on the Fox News Channel’s news roundtable, hosted by Bret Baier weekdays at 6pm ET. A son of Ohio and a graduate of Harvard College and the University of Michigan Law School, Hewitt has been a Professor of Law at Chapman University’s Fowler School of Law since 1996 where he teaches Constitutional Law. Hewitt launched his eponymous radio show from Los Angeles in 1990. Hewitt has frequently appeared on every major national news television network, hosted television shows for PBS and MSNBC, written for every major American paper, has authored a dozen books and moderated a score of Republican candidate debates, most recently the November 2023 Republican presidential debate in Miami and four Republican presidential debates in the 2015-16 cycle. Hewitt focuses his radio show and his column on the Constitution, national security, American politics and the Cleveland Browns and Guardians. Hewitt has interviewed tens of thousands of guests from Democrats Hillary Clinton and John Kerry to Republican Presidents George W. Bush and Donald Trump over his 40 years in broadcasting. This column previews the lead story that will drive his radio/ TV show today.

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