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Two senatorial candidates vying for the Democratic-Farmer-Labor Party nomination faced off Monday in a debate hosted by MPR News with immigration enforcement and fraud as key policy issues separating their campaigns.

It was the final head-to-head matchup between U.S. Rep. Angie Craig and Lt. Gov. Peggy Flanagan ahead of the Aug. 11 primary in the intense and expensive race to fill the seat of retiring U.S. Sen. Tina Smith. And they didn’t hold back any rhetorical punches.

there are key differences between Craig and Flanagan

“The lieutenant governor, even as we sit here today, continues to take absolutely no accountability for any of the fraud issues, and she continues to blame the governor,” Craig said when asked about 

fraud in taxpayer funded social aid programs

 administered by the state. “And I'm going to be honest: It's pissing me off.”

Craig said Flanagan has shirked responsibility for fraud that took root while she served as second in command in state government alongside Gov. Tim Walz, creating a “unique vulnerability” for her against Republicans. Flanagan said lawmakers have taken steps to root out fraud earlier and said Walz has taken the lead in addressing it.

Meanwhile, Flanagan reiterated a concern about Craig that she’d voted in support of the Laken Riley Act, the immigration law sought by President Donald Trump that provided agents more detention power. Flanagan said the vote was “disqualifying” after the federal government’s extended immigration enforcement actions in Minnesota.

“Voting three days into the second Trump administration for Donald Trump's immigration bill that allowed him to terrorize our communities, the loss of life, the economic impact, the trauma — it's horrific,” Flanagan said.

Craig has since said she regrets the vote.

The candidates had a series of tense back-and-forths during the one-hour debate. And they sought to make the case that they were best positioned to advance.

Flanagan has the DFL Party’s endorsement in the race and is part of a clutch of candidates nationally favored by the progressive wing of the party, but Craig has her own roster of prominent endorsers and a record of winning tough races.

Craig and Flanagan and their allies have combined to spend more than $25 million already, much of it on ads.

Both highlighted their backgrounds growing up in poverty and overcoming adversity to reach stronger professional and economic positions. 

Flanagan said Minnesotans are looking for a candidate that would push back on the Trump administration and push the Democratic Party to work toward transformational change.

She highlighted support from U.S. Sens. Bernie Sanders and Elizabeth Warren, along with the Minnesota Senate seat’s current occupant: Tina Smith. 

“I've heard from you all across the state of Minnesota that you are sick and tired of nibbling around the edges, and you are ready for big, bold change,” Flanagan said. “Part of the reason that we're here is because too many Democrats have been weak.”

Flanagan contended that Craig fell into that group since she’d voted in lockstep with Republicans more than any other member of Minnesota’s congressional delegation.

Craig said she showed her political ability when she flipped the 2nd Congressional District in 2018 and then continued to win the swing district seat.

“No one thought any Democrat could win that seat. No one certainly thought a lesbian mother of four could win that seat. But not only have we won it, we have held it,” Craig said. “This is an existential moment in time. The only way we stop Donald Trump and Republicans is by winning elections. I am in the best position to win this statewide election.”

She also pointed to endorsements of local elected officials in the contest, including state lawmakers in swing districts.

Both candidates said they would rally their supporters behind the other candidate if they came up short in the primary.

Republicans also have a multicandidate primary to determine who will fill the GOP line on November’s ballot. Former Navy SEAL Adam Schwarze, 

who has the party’s convention endorsement

, is being challenged by former TV sports broadcaster Michele Tafoya, former pro basketball player Royce White, Navy veteran Tom Weiler and others.

The November ballot will also include third-party candidates Libertarian Rebecca Whiting and Marisa Simonetti, who is running as an independent.

Following the federal government’s immigration enforcement actions in Minnesota, including the killings of two U.S. citizens in Minneapolis, both candidates said they’d pursue an overhaul at Immigration and Customs Enforcement.

“ICE itself has to be ripped apart,” Flanagan said. “We are seeing this essentially lawless entity that has killed 11 people with impunity. It is unacceptable.”

Craig said federal lawmakers need to “dismantle Trump and Republicans' ICE” and put in place new requirements for ICE officers banning facemasks and requiring body cameras.

Both candidates support a path to universal healthcare coverage but split on the best plan to get there.

Craig said she wants to see a public option that lets a government-run health insurance plan compete with private insurance. Flanagan, meanwhile, supported expanding Medicare to cover everyone.

“I also believe that folks are ready for Medicare for All. We need to ensure that we're not just paying for health insurance, but that people receive actual healthcare,” Flanagan said.

Craig, a former executive for a medical device company, said she had concerns about that approach.

“We have to move to an outcomes-based, values-based system where our healthcare system is based on actually achieving health,” she said.

Both Craig and Flanagan said they support a swift end to the war in Iran and would like to pursue a two-state solution to the conflict between Israel and Palestine. They clashed over support in the Senate contest from outside groups supporting Israel.

Flanagan said the American Israel Public Affairs Committee has been funneling money into the race in support of Craig’s campaign

“They've been her biggest funder throughout her entire political career. My values do not align with AIPAC. I'm not taking their money, and I think that this matters when it comes to how we engage in foreign policy,” Flanagan said.

Craig said Flanagan has also courted support from AIPAC.

“She met with AIPAC. She also provided a position paper to AIPAC,” Craig said. “So again, this is Peggy Flanagan, who has been very hypocritical.” 

Flanagan said she’d previously met with the group. She said she thinks its values are “out of step with where Minnesotans are at.”

Asked about artificial intelligence and potential regulations, both expressed concern about the potential that the technology could get out of control without adequate oversight.

They advocated for guardrails to prevent potential misuse and a “kill switch” to turn off the technology if it gets out of hand.

“I think that this is an existential threat to us if it gets out of control,” Flanagan said. “When it comes to data centers, I think it's clear that people have big concerns all across Minnesota and all across this country. It absolutely is troubling to me that we seem to be moving at the speed of corporate interests and not of community, and we have to determine who benefits.”

Craig said federal regulations on the AI industry and data centers that power them are appropriate.

“I do think we have to consider a kill switch,” Craig said. “No big tech company gets out of not funding the electricity cost and the water quality and water supply in this country is another concern of mine.”

The responses come as communities around the state have raised concerns about proposed data center projects. Both candidates also expressed concerns about the technology replacing jobs.

 of passing a bill requiring disclosure agreements between local governments and tech companies about potential data center agreements.

In a similar vein, both candidates said prediction markets like Kalshi and Polymarket required additional guardrails. And they said they’d never wagered on the sites.

“I think the prediction markets are out of control,” Craig said, citing concerns about politicization of the Commodity Futures Trading Commission, the agency tasked with regulating the markets. “We need the cops on the beat at the CFTC, and we certainly need to ban insider trading and many of the activities going on on prediction markets.”

Flanagan pointed to a state law set to take effect next month banning the platforms from operating in Minnesota. The CFTC, along with Kalshi and Polymarket, have challenged the law in court. And she said the markets could cause harm to Minnesota communities, including Tribal Nations that have compacts to manage gambling operations.

“I think that's a great risk, not just for Indian country and for tribes as a whole, but for Minnesota, for local economies as well,” Flanagan said.

Watch: Flanagan, Craig U.S. Senate debate

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The DFL candidates butted heads during an MPR News debate over their records on key policy positions and sought to make the case that they were best suited to advance to the November ballot.

Angie Craig, Peggy Flanagan spar over fraud, immigration in U.S. Senate debate

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