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On January 8, 2026, the Trump Administration announced the creation of a new Department of Justice division focused on national fraud enforcement, signaling an anticipated expansion of federal fraud investigations and enforcement activity. The new division, the National Fraud Enforcement Division, is intended to enforce federal criminal and civil fraud laws affecting federal programs, federally funded benefits, businesses, nonprofits, and private citizens nationwide. This division is expected to coordinate multi-district and multi-agency investigations designed to identify, disrupt, and dismantle organized fraud schemes across jurisdictions.
Although the division's mandate is broad, the White House's fact sheet announcing the initiative provides insight into potential enforcement priorities. For example, the announcement referenced federal investigations into Minnesota's administration of federal funding related to SNAP, housing, early childhood education, and Medicaid. The announcement also referenced potential enforcement attention in other states, including Ohio and California. Initial public statements suggested the National Fraud Enforcement Division could be overseen directly by the Vice President and President. However, a January 16 letter to Congress included an organizational chart indicating the division will report to a Deputy Attorney General.
On January 28, 2026, President Trump announced that Colin McDonald will be nominated as the Assistant Attorney General for the National Fraud Enforcement Division but said little else about the division's scope. McDonald is currently serving as the Associate Deputy Attorney General to the Deputy Attorney General Todd Blanche, where his portfolio includes oversight of federal law enforcement agencies, including the FBI and DEA.
More specifics about the new division's mandate are expected when the Assistant Attorney General is confirmed. For now, it is likely safe to assume the division could mean greater scrutiny of any entity or individual that receives federal funding, consistent with recent record False Claims Act recoveries reported by the Department of Justice. Accordingly, recipients of federal funding should:
- Refresh and retrain employees on the False Claims Act requirements, including accuracy of certifications submitted in connection with federal funding.
- Review and update internal compliance policies and procedures addressing federal funding requirements and related reporting obligations.
- Implement enhanced internal review procedures for federal funding applications and certifications to ensure compliance with program requirements.
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