Spring Cleaning: The Trump Administration Continues Push To Root Out Federal Program Fraud

Spring has arrived, and the Trump administration is doing some housecleaning — with federal program fraud squarely in its sights. Over the past few months, the administration has moved aggressively to centralize and expand fraud enforcement across the federal government: first by creating a National Fraud Enforcement Division (the Division) within the U.S. Department of Justice (DOJ) that reports directly to the White House, and most recently, by establishing a Presidential Task Force dedicated to eliminating fraud in federally funded programs. Companies that receive federal funding, administer benefits, or deliver services through federal programs should take note — and brush up their compliance programs.

Background: A Government-Wide Enforcement Push

The Trump administration has made combating federal program fraud a signature priority. Earlier this year, DOJ announced the creation of the National Fraud Enforcement Division, designed to increase coordination by combining historically separate civil and criminal enforcement components under one roof. On March 24, 2026, the Senate voted 52-47, largely along party lines, to confirm Colin McDonald as the Division’s inaugural Assistant Attorney General (AAG). McDonald is expected to play a central role in shaping the Division’s priorities, staffing, and coordination with other federal agencies. McDonald’s moves will be closely watched as key questions remain about the new Division’s enforcement priorities and coordination with existing DOJ fraud components.

A New Task Force to “Eliminate” Fraud

On March 16, 2026, President Trump issued an executive order (EO) establishing a Presidential Task Force to Eliminate Fraud (the Task Force). Where the DOJ National Fraud Division focuses on prosecution, the Task Force appears to take a broader, preventive approach — coordinating across the entire federal government to strengthen program integrity before fraud occurs.

According to the EO, the Task Force will combat “widespread fraud, waste, and abuse” in federally funded benefit programs, including housing, food assistance, medical care, and other public assistance programs, many of which are administered by states using federal funds. The EO identifies alleged weaknesses in eligibility verification, program oversight, and information sharing as vulnerabilities that — according to the administration — have allowed ineligible individuals and providers to exploit these programs, resulting in significant improper payments. The EO also highlights recent federal program fraud prosecutions involving immigrant communities in Minnesota and notes there is “strong reason to believe that similar problems exist” in “California, Illinois, New York, Maine, and Colorado,” all states led by Democrats.

Task Force Membership

Vice President J.D. Vance will chair the Task Force, with Federal Trade Commission Chairman Andrew Ferguson serving as Vice Chair. The Assistant to the President for Homeland Security will serve as Senior Advisor, and an Executive Director appointed by the Vice President will manage day-to-day operations. Member agencies include:

• U.S. Department of the Treasury
• U.S. Department of Justice
• U.S. Department of Agriculture
• U.S. Department of Labor
• U.S. Department of Health and Human Services
• U.S. Department of Housing and Urban Development
• U.S. Department of Education
• U.S. Department of Veterans Affairs
• U.S. Department of Homeland Security
• Small Business Administration
• Office of Management and Budget
• Other agencies, inspectors general, or Emergency Operations Plan components as designated by the Chairman

Near-Term Deadlines

The EO sets an aggressive timeline. Within 30 days, member agencies administering federal benefit programs must identify transactions and processes most vulnerable to fraud and propose preventive measures. Within 60 days, the Task Force must establish minimum anti-fraud requirements for those high-risk areas, which may include enhanced identity verification, documentation standards, data-sharing protocols, and auditing tools. Within 90 days, participating agencies must submit implementation plans. The EO also directs the Attorney General to promote meritorious False Claims Act qui tam suits involving federal program fraud and to prioritize prompt review of such cases (it is unclear whether this will be an aspect of National Fraud Enforcement Division AAG McDonald’s work).

What This Means for Federal Funding Recipients

Together, the new Task Force and the National Fraud Division leadership reflect the administration’s enthusiasm for a coordinated, government-wide fraud enforcement model. The approach echoes prior federal efforts to combat pandemic-related fraud — which relied heavily on data sharing, cross-agency collaboration, and use of the False Claims Act — and produced significant enforcement activity and recoveries. That model is now being applied more broadly to federal benefit programs.

The practical implications are significant. Healthcare providers, contractors, nonprofit organizations, and other entities participating in federally funded programs can expect increased scrutiny as agencies implement new anti-fraud controls and expand information sharing — both horizontally across federal agencies and vertically with state, local, tribal, and territorial governments. Entities in the crosshairs should act now to assess their compliance controls, documentation practices, and eligibility verification processes in anticipation of heightened enforcement activity.

We will continue to monitor developments in federal fraud enforcement and the work of the new Task Force. For questions about these developments, please contact the authors or any member of Arnold & Porter’s White Collar Defense & Investigations practice group.

© 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.