U.S. Education Secretary Linda McMahon has called on Minnesota Governor Tim Walz to resign, accusing his administration of failing to stop large-scale fraud involving federal education funds. In a sharply worded letter dated December 15, McMahon said the governor should step aside and allow what she described as more capable leadership to take over, as multiple federal investigations continue into alleged misuse of taxpayer money.
In the letter, McMahon directly blamed Walz for what she said was a serious breakdown in oversight within Minnesota’s education system. She accused the governor of allowing fraud to take place and benefiting politically from a system that failed to protect public funds. McMahon stressed that no elected official is above the law and warned that the Department of Education, along with other federal agencies under President Donald Trump’s administration, would continue pursuing accountability. She said efforts to avoid responsibility would not succeed.
At the center of the dispute are allegations involving so-called “ghost students.” McMahon claimed that more than 1,800 fake or ineligible students were used to improperly obtain federal college grants and student loans, totaling more than $12 million. According to her letter, much of that money did not go toward legitimate education expenses, raising concerns that the funds were diverted or misused.
McMahon argued that these failures point to weak leadership at the state level. She said Minnesota’s government did not do enough to prevent or quickly stop the alleged fraud, despite warning signs. Her letter portrayed the issue as part of a broader pattern of mismanagement that, in her view, requires a change in leadership at the top.
Governor Walz has strongly rejected these accusations. In a recent opinion piece published in the Minnesota Star Tribune, he said Minnesota is not unique in facing fraud related to federal programs, especially during the COVID-19 pandemic. Walz explained that many states struggled with similar problems as large amounts of emergency funding were released quickly to help individuals, businesses, and institutions during an unprecedented crisis.
Walz also pushed back against claims that his administration ignored the issue. He wrote that when suspicious activity was detected, the Department of Education pursued legal action against those believed to be responsible, but those cases were unsuccessful in court. He added that when concerns were raised with the Trump administration at the time, state officials felt their warnings were dismissed or not taken seriously.
According to the governor, fraud during the pandemic was a national problem, not a Minnesota-only failure. He noted that other states lost billions of dollars to COVID-era fraud schemes and said it is misleading to single out Minnesota without acknowledging the wider context. Walz maintained that his administration acted in good faith and continues to support efforts to improve oversight and recover lost funds.
The controversy has quickly taken on a political tone. Minnesota Republican Congressman Tom Emmer, who also serves as the House GOP Majority Whip, publicly supported McMahon’s criticism. In a post on social media platform X, Emmer accused Walz of widespread incompetence and said the governor would be held accountable for what he described as fraud across multiple areas.
The dispute highlights growing tensions between state leaders and federal officials over responsibility for managing and monitoring federal funds. It also underscores how allegations of fraud, especially those linked to pandemic-era programs, remain a major political issue years after the emergency funding was distributed.
As federal investigations continue, the outcome could have serious consequences for Minnesota’s leadership and for how education funding is monitored nationwide. For now, the sharp exchange of letters, opinion pieces, and political statements shows that the issue is far from settled, with both sides standing firmly by their versions of events.
