Minnesota Governor Tim Walz has been formally demanded to resign by U.S. Education Secretary Linda McMahon following a massive fraud scheme involving millions of taxpayer dollars that were misappropriated under his administration.
McMahon’s letter revealed that thousands of “ghost students”—individuals who did not exist or were foreign nationals—received federal grants and loans without ever meeting enrollment requirements. Specifically, in Minnesota alone, 1,834 ghost students were identified as having collected $12.5 million in taxpayer funds.
McMahon wrote: “Given your dereliction of the office entrusted to you by Minnesotans, I implore you to resign and make way for more capable leadership.”
The letter highlighted that under Walz’s governance since 2019, the state has been a focal point for international fraudsters targeting U.S. education programs. McMahon accused Walz of failing to adequately oversee the state’s educational systems.
According to the Department of Education, these ghost student scams have cost taxpayers billions nationwide, with Minnesota being one of the most affected states. The department has implemented measures such as mandatory identity verification for new applicants to combat such fraud.
The demand for Walz’s resignation follows allegations that at least $1 billion in taxpayer funds was siphoned through a scheme targeting the Somali community under his administration.