Overview
- Education Secretary Linda McMahon, in a letter dated Dec. 15 released Tuesday, urged Gov. Tim Walz to step down, citing what she called a dereliction of duty over widening fraud in the state.
- The Department of Education reported that 1,834 so‑called ghost students in Minnesota received $12.5 million in grants and loans, while the agency’s new controls have blocked more than $1 billion in attempted student‑aid theft nationwide.
- McMahon’s letter describes how applicants posed as students, sometimes using bots or international fraud networks, with Minnesota colleges including Riverland Community College, Century College, and Minnesota State College Southeast reporting suspected cases.
- Walz said last week he is creating a statewide fraud‑prevention program with a private forensic auditor and stated, “I take full responsibility,” as critics pressed for concrete accountability steps.
- Related federal actions and reviews are expanding, with Treasury planning a Geographic Targeting Order for certain money services businesses, the Small Business Administration probing networks tied to pandemic fraud, and HHS seeking records on social‑services spending.