Trump Admin Calls On Walz To Resign Over Widening Fraud Scandal
President Donald J. Trump’s education secretary has delivered a blistering rebuke of Minnesota Gov. Tim Walz, calling for his resignation amid what federal officials describe as an expanding web of fraud tied to state welfare programs and higher education institutions.
In a sharply worded letter obtained by Fox News Digital, Education Secretary Linda McMahon accused Walz of gross mismanagement and systemic failures during his time in office.
“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, especially from Somalia, to establish a beachhead of criminality in our country. As President Trump put it, you have turned Minnesota into a ‘fraudulent hub of money laundering activity.’”
McMahon concluded the letter with a direct call for Walz to step aside.
“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.
The letter centers on Minnesota’s massive fraud scandal, which has drawn national attention following allegations that nonprofits—including Feeding Our Future—misappropriated at least $1 billion in taxpayer funds during Walz’s tenure. McMahon also pointed to what the Department of Education characterized as extensive fraud embedded within the state’s higher education system.
The criticism follows a recent announcement from the Department of Education that it blocked more than $1 billion in fraudulent student aid during President Trump’s first year back in office during his second term, citing aggressive enforcement against automated applications and so-called “ghost students” seeking federal loans.
One of the most severe cases, according to Fox News Digital, disproportionately affected Minnesota. Riverland Community College alone reportedly averaged more than 100 potentially fraudulent student aid applications per year.
McMahon said her department uncovered nearly 2,000 “ghost students” connected to Minnesota colleges and universities.
“We call these fraudsters ‘ghost students’ because they were not ID-verified and often did not live in the United States, or they simply did not exist,” McMahon wrote. “In Minnesota, 1,834 ghost students were found to have received $12.5 million in taxpayer-funded grants and loans. They collected checks from the federal government, shared a small portion of the money with the college, and pocketed the rest without attending the college at all.”
She noted that the department has since rolled out stricter nationwide safeguards, including mandatory identity verification for certain first-time applicants, before turning her attention to Rep. Ilhan Omar (D-Minn.).
McMahon accused Omar of borrowing “tens of thousands” in student loans and later opposing repayment obligations despite earning a substantial taxpayer-funded salary.
According to the letter, Omar “now does not think she should have to repay, despite her generous, taxpayer-funded salary.”
Last month, a conservative watchdog group urged House Speaker Mike Johnson to pursue wage garnishment against Omar over her student loan debt, citing her $174,000 annual congressional salary, Alpha News reported. McMahon accused the congresswoman of having “taken advantage” of federal taxpayers.
Beyond education, the letter broadened its scope to accuse Walz’s administration of presiding over widespread welfare fraud impacting housing assistance, food programs, small-business relief, and services for seniors and children with autism.
According to McMahon, the fraud flourished while state leadership failed to act.
“Shame on you, Governor Walz, for allowing this to happen and for benefiting from it,” she wrote. “Stop defrauding American taxpayers. No politician is above the law, and my department, alongside every other agency under the leadership of President Trump, will continue to ensure that you will not be able to dodge accountability for your actions.”
In response to mounting criticism, Walz announced last week the creation of a new statewide fraud prevention initiative and the hiring of a private forensic auditing firm.
“I take full responsibility for it,” Walz said. “I think, and I will acknowledge certainly to Minnesotans and to the press here, I don’t think we’ve done a good enough job of communicating the hard work that’s being done.”