Trump Administration Moves to Create National DOJ Division for Fraud Enforcement

Key Takeaways

• New DOJ Fraud Division Planned: The Trump administration has announced plans to establish a dedicated Department of Justice division focused on national fraud enforcement.
• Centralized Federal Oversight: A new Assistant Attorney General will coordinate multi-district fraud investigations, guide U.S. Attorneys’ Offices, and help set national enforcement priorities.
• Minnesota as a Focal Point: Ongoing investigations into alleged fraud across Minnesota state programs are cited as a key driver, with dozens of cases already charged and convicted.
• Whole-of-Government Push: Multiple federal agencies, including DOJ, DHS, HHS, CMS, and SBA, are involved in parallel enforcement, audits, payment freezes, and reviews.
• Policy and Legislative Role: Beyond prosecutions, the new division is expected to propose reforms aimed at closing systemic gaps that enable large-scale fraud.

Deep Dive

The White House on Thursday signaled a big shift in how the federal government plans to pursue large-scale fraud, announcing that the administration of Donald J. Trump is moving to establish a new Department of Justice division dedicated to national fraud enforcement.

According to a fact sheet released January 8, the new division will sit within the U.S. Department of Justice and will focus on enforcing federal criminal and civil fraud laws across the country. Its remit will be broad, covering fraud targeting federal programs and benefits, as well as schemes affecting businesses, nonprofit organizations, and private citizens.

Centralizing the Federal Fraud Fight

At the center of the new division will be an Assistant Attorney General charged with coordinating fraud enforcement on a national scale. That role will oversee multi-district and multi-agency investigations, provide direction and support to U.S. Attorneys’ Offices, and work closely with federal agencies to identify and dismantle organized and sophisticated fraud operations that cross state and jurisdictional lines.

Beyond prosecutions, the position is also intended to shape policy. The Assistant Attorney General will help set national enforcement priorities and recommend legislative or regulatory changes where the administration believes structural weaknesses have allowed fraud to take hold. The role will also advise the Attorney General and Deputy Attorney General on high-impact investigations and broader fraud-related policy matters.

Minnesota at the Center of Current Enforcement Efforts

The announcement devotes significant attention to ongoing fraud investigations in Minnesota, which the administration describes as extensive and still unfolding. Federal prosecutors are actively investigating alleged fraud tied to a range of state programs, including Feeding Our Future, Housing Stabilization Services, and Early Intensive Developmental and Behavioral Intervention initiatives. The DOJ is also leading prosecutions connected to the Evergreen Recovery Medicaid fraud cases.

According to the White House, 98 defendants have been charged in Minnesota-related fraud cases so far, with 64 convictions already secured. Investigators have issued more than 1,750 subpoenas, executed over 130 search warrants, and conducted more than 1,000 witness interviews. The department says it is doubling the number of federal prosecutors assigned to these matters as investigations continue.

The Federal Bureau of Investigation is also playing a central role, investigating dozens of health care and home care providers accused of fraud and examining potential links to elected officials and terrorist financing. Meanwhile, the Department of Homeland Security has deployed roughly 2,000 agents to Minnesota and is conducting targeted, door-to-door investigations at locations suspected of fraudulent activity.

A Whole-of-Government Response

The fact sheet outlines a wide array of actions taken by other federal agencies as part of what the administration presents as a coordinated enforcement push.

The Department of Health and Human Services has frozen certain childcare payments nationwide and introduced new documentation requirements, while also investigating Minnesota Head Start programs. The Centers for Medicare and Medicaid Services has paused Medicaid payments to 14 Minnesota programs previously flagged for fraud, waste, and abuse, citing concerns about compliance with federal requirements.

Other agencies have taken parallel steps. The Small Business Administration has halted annual grant payments to Minnesota and suspended thousands of borrowers over suspected fraud. The Department of Housing and Urban Development has sent investigators to review housing assistance programs, while the Department of Labor and Department of Agriculture are conducting targeted reviews of unemployment insurance and SNAP eligibility, respectively.

While the DOJ’s new national fraud enforcement division has yet to be formally established, the White House framed the move as an effort to bring greater coordination, consistency, and intensity to federal fraud investigations. By centralizing leadership and aligning enforcement priorities across agencies, the administration says it aims to strengthen oversight of federally funded programs and improve the government’s ability to pursue complex, multi-jurisdictional fraud schemes.

Details on the timeline for standing up the division, staffing levels, and the nomination of the Assistant Attorney General have not yet been released.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.