Education Secretary Linda McMahon urges Tim Walz to resign amid federal aid fraud controversy

WASHINGTON, DC: Education Secretary Linda McMahon called on Minnesota Gov Tim Walz to resign, accusing him of presiding over widespread fraud across federal assistance programs, including what she described as significant abuse within the state’s college education system.

McMahon made the demand in a letter sent to Walz on Tuesday, portions of which were first reported by Fox News Digital. The letter sharply criticized the governor’s handling of fraud cases that have emerged during his tenure.

Letter cites education fraud and ‘ghost students’

"You have been Minnesota’s Governor since 2019," McMahon wrote. "During that time, your careless lack of oversight and abuse of the welfare system has attracted fraudsters from around the world."

She cited comments previously made by President Donald Trump, writing that Minnesota had become a "fraudulent hub of money laundering activity."

McMahon’s letter focused heavily on findings from the Department of Education related to alleged fraud in Minnesota’s higher education system.

She said federal investigators identified nearly 2,000 so-called "ghost students" who were not properly verified and received taxpayer-funded grants and loans.

"In Minnesota, 1,834 ghost students were found to have received $12.5 million in taxpayer-funded grants and loans," McMahon wrote. "They collected checks from the federal government without attending the college at all."

The letter referenced Riverland Community College, which federal officials said averaged more than 100 potentially fraudulent applications per year.

Broader welfare fraud allegations outlined

Beyond education funding, McMahon accused Walz of overseeing what she described as a massive breakdown in fraud prevention across federal programs.

The letter cited housing benefits, food assistance, small-business relief, and programs aimed at elderly Americans and children with autism as areas allegedly exploited by criminal networks.

According to McMahon, these schemes enriched fraudsters while taxpayers bore the cost.

"Given your dereliction of the office entrusted to you by Minnesotans, I implore you to resign and make way for more capable leadership," she wrote.

Department says reforms underway nationwide

McMahon noted that the Department of Education has taken steps to curb student aid fraud nationwide, including mandatory identity verification requirements for certain first-time applicants.

Federal officials have said those measures have helped prevent more than $1 billion in suspected fraud during the Trump administration’s first year back in office.

The department has framed the effort as part of a broader push to protect taxpayer dollars and restore integrity to federal aid programs.

Tim Walz responds with reform pledge

Walz acknowledged fraud concerns during a press conference last week, announcing the creation of a new statewide prevention program and the hiring of a private forensic auditing firm.

"The system was taken advantage of by an organized group of fraudsters and criminals," Walz said. "I take full responsibility for it."

He added that the state had not done enough to communicate its response efforts.

Critics question accountability

Some critics said Walz’s response did not go far enough.

Conservative commentator Dustin Grage said no state officials had been dismissed despite the scope of the allegations.

"Not a single bureaucrat in this state in regard to the fraud has been fired," Grage said, arguing that responsibility ultimately rests with the governor.

Walz’s office did not immediately respond to a request for comment on McMahon’s letter.

The Department of Education said that it will continue coordinating with federal and state partners to pursue fraud cases and strengthen safeguards across assistance programs.