WASHINGTON, D.C. — U.S. Education Secretary Linda McMahon is calling on Minnesota Gov. Tim Walz to resign, accusing him of overseeing what federal officials describe as one of the largest and most pervasive fraud crises in the country.
In a sharply worded letter sent Tuesday and obtained by Fox News Digital, McMahon blasted Walz’s leadership and cited widespread abuse of federal welfare and education programs during his tenure as governor.
“You have been Minnesota’s Governor since 2019,” McMahon wrote. “During that time, your careless lack of oversight has attracted fraudsters from around the world and turned Minnesota into a hub of money laundering activity.”
Allegations of Massive Welfare and Education Fraud
McMahon’s letter references multiple high-profile fraud cases, including the Feeding Our Future scandal, in which nonprofit organizations — many tied to Minnesota’s Somali community — allegedly stole at least $1 billion in taxpayer funds.
Federal authorities say the fraud extended across nearly every major assistance program, including food stamps, housing benefits, small-business relief, and programs designed to help children with autism and elderly Americans.
According to McMahon, the governor failed to intervene as the schemes expanded.
“Ghost Students” and College Aid Abuse
The letter also highlights alleged fraud within Minnesota’s college education system.
The Department of Education says it recently blocked more than $1 billion in student aid fraud nationwide, including schemes involving bots and so-called “ghost students.” Investigators identified nearly 2,000 ghost students in Minnesota alone, McMahon said.
One case cited involved Riverland Community College, which averaged more than 100 potentially fraudulent student aid applications per year.
The department has since implemented mandatory identity verification for certain first-time applicants.
Ilhan Omar Named in Letter
McMahon’s letter also targets Rep. Ilhan Omar, accusing her of taking advantage of the student loan system.
According to the letter, Omar borrowed tens of thousands of dollars in student loans and now argues she should not have to repay them, despite earning a taxpayer-funded salary of $174,000 per year.
A conservative watchdog group recently urged House Speaker Mike Johnson to garnish Omar’s congressional wages over the debt.
Walz Responds, Critics Unmoved
Facing mounting pressure, Walz announced last week that Minnesota will implement a new statewide fraud prevention system in partnership with a private forensic auditing firm.
“The system was taken advantage of by an organized group of criminals,” Walz said. “I take full responsibility.”
However, critics say his response lacks accountability.
Conservative commentator Dustin Grage noted that no state officials have been fired despite the scale of the fraud.
“If he’s taking responsibility, where are the consequences?” Grage said. “Not a single bureaucrat has been held accountable.”
Political Fallout Grows
The controversy has reshaped Minnesota’s political landscape.
MyPillow CEO Mike Lindell announced Thursday that he is running for governor, citing fraud and government mismanagement under Walz as a central issue of his campaign.
Republican leaders, including House Majority Whip Tom Emmer, also weighed in.
“Tim Walz’s incompetence has led to fraud of nearly every kind,” Emmer wrote on X. “He will be held accountable.”
Walz, who is seeking a third term, continues to defend his record, insisting fraud investigations are ongoing and that offenders will face prison time.
