Trump Administration Announces Creation of DOJ’s National Fraud Enforcement Division; Major Crackdown Underway in Minnesota

Washington: The Trump Administration on Thursday announced plans to establish a new Department of Justice (DOJ) Division for National Fraud Enforcement, expanding federal efforts to combat fraud targeting government programs, federally funded benefits, businesses, nonprofits and private citizens.

According to the administration, the new division will enforce federal criminal and civil fraud laws nationwide. A newly appointed Assistant Attorney General will lead the division and oversee large-scale, multi-district and multi-agency investigations. The role will also guide U.S. Attorneys’ Offices on fraud matters, coordinate with federal agencies, propose legislative and regulatory reforms, and advise senior DOJ leadership on high-impact fraud cases and related policy issues.

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Minnesota Enforcement Actions

As part of its broader anti-fraud initiative, the administration detailed extensive enforcement operations underway in Minnesota, where federal agencies are pursuing multiple investigations across public assistance and health programs.

The DOJ is investigating alleged fraud involving several state programs, including Feeding Our Future, Housing Stabilization Services, and Early Intensive Developmental and Behavioral Intervention programs. Federal prosecutors are also handling the Evergreen Recovery Medicaid fraud case.

To date, the DOJ reports that 98 defendants have been charged in Minnesota-related fraud cases, 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 as part of ongoing inquiries. Prosecutorial staffing in the state has been doubled to accelerate case processing.

The FBI is conducting parallel investigations into numerous healthcare and home-care providers, deploying forensic accounting and data analytics teams while examining potential links to public officials and other financial crimes.

 

Meanwhile, the Department of Homeland Security (DHS) has deployed approximately 2,000 agents to Minnesota, conducting targeted field investigations. DHS has reported over 1,000 immigration-related arrests in recent weeks and identified more than 1,300 suspected fraud findings earlier this year under Operation Twin Shield.

The Department of Health and Human Services (HHS) has frozen certain childcare payments nationwide pending verification requirements and is investigating Minnesota’s Head Start programs. Centers for Medicare and Medicaid Services (CMS) has paused Medicaid payments to 14 Minnesota programs previously flagged for fraud, waste and abuse until audits are completed.

Additional enforcement measures include:

• $10 billion in federal funding reductions affecting five states, including Minnesota

• Suspension of 6,900 Small Business Administration borrowers linked to approximately $400 million in suspected fraud

• HUD investigations into possible housing-assistance fraud

• Department of Labor review of Minnesota’s unemployment insurance program

• USDA-mandated SNAP recertification to ensure compliance with eligibility requirements

 

The administration said these combined actions represent a coordinated federal effort to strengthen oversight, protect public funds and restore confidence in federally funded programs.