Seeing Double: Trump Administration To Create New DOJ Fraud Enforcement Division

The U.S. Department of Justice (DOJ) has longstanding criminal and civil components to combat fraud. Nevertheless, on January 8, 2026, the Trump administration announced the “upcoming creation” of a new division dedicated to national fraud enforcement, to be led by a new Assistant Attorney General (AAG) who would report directly to the White House. Although the announcement identified the new division’s broad mission, it left key questions unanswered: How will the new division avoid duplicating the efforts of the existing DOJ fraud enforcement components? What resources will the new division have? And how will the White House’s direct oversight of the division shape its enforcement work? We examine the administration’s announcement and its implications below.

The Details So Far

According to a White House “Fact Sheet,” the new division is designed to “enforce the Federal criminal and civil laws against fraud targeting Federal governmental programs, Federally funded benefits, business, nonprofits, and private citizens nationwide.” A new AAG — a presidentially appointed, Senate-confirmed position — will lead the division. In the White House press briefing the morning of the announcement, Vice President Vance explained that the new AAG will have “nationwide jurisdiction over the issue of fraud.” He further explained that the AAG will operate “out of the White House, under the supervision of” the president and vice president, a contrast to post-Watergate norms distancing DOJ from the White House.

In addition to overseeing the division, this new AAG will play a role in policymaking by setting priorities, proposing legislation, and advising the Attorney General (AG) and Deputy Attorney General (DAG). The new AAG also will direct U.S. Attorney’s Offices on fraud-related issues. Vice President Vance stated that the administration would “make the nomination hopefully in the next few days” and that Senate Majority Leader John Thune had promised the AAG nominee would receive “swift confirmation.”

The White House dedicated more than half of the Fact Sheet to DOJ’s recent enforcement efforts in Minnesota, including pending prosecutions against immigrants accused of fraudulently obtaining government benefits. The vice president echoed this emphasis, stating that the new division will focus its enforcement “primarily in Minnesota” before expanding to “a nationwide effort.” Given the high profile nature of the Minnesota cases and their intersection with immigration policy, the administration’s decision to spotlight the state as the starting point for the new division’s work is unsurprising.

Open Questions

Combating fraud has long been a bipartisan DOJ priority. Indeed, DOJ has well-established components that specifically target fraud schemes: the Criminal Division’s Fraud Section and the Civil Division’s Commercial Litigation Branch, Fraud Section (commonly known as “Civil Frauds”). Both are led by high-ranking DOJ officials, who report to existing AAGs and, ultimately, to the AG and DAG. These sections — and the federal prosecutors who work in them — handle precisely the type of large-scale fraud schemes that appear to be within the new division’s scope. As recently as May 2025, the then-head of the Criminal Division identified as enforcement priorities healthcare, procurement, and federal program fraud; trade, tariff, and customs fraud; elder fraud; securities fraud; and other forms of market manipulation. The Civil Division similarly has prioritized federal program fraud through False Claims Act enforcement.

It remains unclear how the new division will align with the existing criminal and civil Fraud Sections. According to a press report, the newly confirmed head of DOJ’s Criminal Division, AAG Tysen Duva, announced that the Fraud Section will remain intact, and will seek to establish “a collaborative partnership” with the new division. How that partnership materializes — and how it avoids turf battles between groups tasked with similar missions — will be a key test of whether the new division can coexist with these longstanding DOJ components without undermining them or wasting resources.

The Fact Sheet does not explain how the new division will be funded or staffed. AAG Duva reportedly stated that the new division will hire its own staff once an AAG is confirmed, rather than seek to pluck personnel from existing DOJ components. But this proposed expansion comes at a time when DOJ resources are dwindling. According to the Office of Personnel Management, DOJ lost nearly 8% of its total workforce in 2025 alone.

An open question remaining is how the White House’s direct control of the new division will shape its work. Traditionally, DOJ has maintained independence from the White House to shield its prosecutorial decisions from political influence. As announced, the new division departs from this traditional separation, and instead appears to openly embrace the notion that political priorities will inform enforcement efforts.

Key Takeaways

Expect continued — and potentially expanded — fraud enforcement. Regardless of how the new fraud division ultimately is structured, the administration’s announcement reinforces that fraud involving federal programs and funds remains a top enforcement priority. Companies, nonprofits, and other federal fund recipients should expect sustained scrutiny using familiar tools such as the False Claims Act.

Enforcement priorities may be shaped by political considerations. Statements suggesting that the new fraud division will operate out of the White House and early indications that enforcement will focus on specific, potentially politicized issues may introduce greater uncertainty into enforcement decision-making and case selection.

Compliance programs remain the first line of defense. Companies and organizations that receive federal funding — or operate in heavily regulated environments — should continue to evaluate and strengthen their compliance, internal controls, and reporting mechanisms, particularly around eligibility, billing, and representations to the government.

Early engagement may be increasingly important. As DOJ’s organizational structure evolves, companies facing inquiries or investigations may benefit from engaging counsel early to assess risk, navigate parallel civil and criminal exposure, and respond strategically to enforcement activity.

We will continue to cover the shifting structure of DOJ and the work of the newly announced Fraud Division here on Enforcement Edge. For questions about this topic, contact the authors or any of their colleagues in Arnold & Porter’s White Collar Defense & Investigations practice group.

* Bryan Borodkin contributed to this Blog. Bryan is an associate in Arnold & Porter’s New York office.

© Arnold & Porter Kaye Scholer LLP 2026 All Rights Reserved. This Blog post is intended to be a general summary of the law and does not constitute legal advice. You should consult with counsel to determine applicable legal requirements in a specific fact situation.