Another Minnesota Fraud Discovery – Trump Admin Demands Tim Walz’s Resignation

Education Secretary Linda McMahon demanded on Monday that Minnesota Gov. Tim Walz step down over allegations that his administration allowed millions in taxpayer money to be stolen by “ghost students.”

McMahon’s scathing letter, published on X, came after the Education Department reportedly uncovered at least 1,834 fraudulent college applicants in Minnesota received $12.5 million in grants and loans.

Overall, the Trump administration reportedly found that $90 million had been disbursed to alleged scammers in 2024 alone, in addition to $30 million in loans to dead people and over $40 million to companies using AI bots.

These suspected fraudsters, also known as “ghost students,” use stolen identities to obtain the funds.

Dear @GovTimWalz: pic.twitter.com/6VbvrcNdiY

— Secretary Linda McMahon (@EDSecMcMahon) December 16, 2025

McMahon said a newly launched fraud control system had blocked “more than $1 billion in attempted financial aid theft by fraudsters,” including foreign rings and AI bots.

The letter comes as Walz faces scrutiny for failing to stop the theft of more than $1 billion in COVID-19-related relief funds since 2020. 

One of the exploited programs, designed to provide meals for those in need during the pandemic, was reportedly targeted by a group of Somali Americans in Minnesota.

Whistleblowers said the Walz administration ignored red flags in some applications to avoid alienating the Somali community, a key Democratic voting bloc in the state.

“Shame on you, Governor Walz, for allowing this to happen—and for benefiting from it,” McMahon wrote, seemingly referring to the political advantages noted by whistleblowers.

“Stop defrauding American taxpayers,” she added. “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.”

McMahon concluded with a scorching plea: resign.

“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.