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The U.S. Department of Justice (DOJ) recently conveyed a desire to enhance fraud enforcement across multiple government programs, including nursing homes and similar care facilities. During a House Judiciary Committee hearing on February 11, 2026, then Attorney General Pam Bondi confirmed the scope of the newly established National Fraud Enforcement Division when questioned by U.S. Representative Ben Cline (R-Va).
Cline asked if the fraud division would impact long-term care, accountability and senior living facilities engaged in Medicaid fraud, referring to systemic overbilling practices and the misappropriation of taxpayer-funded benefits. Bondi confirmed that this is what the division is “set up to help.”
How the division pursues nursing home fraud cases remains to be seen, but Bondi’s public declaration seems to suggest new enforcement actions are more than likely, especially for entities that receive federal funds. We do not expect the scope of the new division to change based on the recent change in leadership of the department.
Background
The Trump Administration announced the upcoming creation of the DOJ’s new division for national fraud enforcement on January 8, 2026. The division is expected to enforce the federal criminal and civil laws against fraud targeting federal government programs, federally funded benefits, businesses, nonprofits and private citizens in the United States.
The new division serves as an expansion of fraud enforcement, as it does not replace any existing teams with similar functions within the Criminal and Civil Divisions of the DOJ.
President Trump nominated Colin McDonald to lead the new division. At his nomination hearing on February 25, 2026, McDonald echoed the president’s charge to seek out all fraud cases, regardless of size or who is behind them. McDonald also named abuses of Medicaid among the division’s initial targets.
Trend of Nursing Home Fraud Focus
The DOJ has increasingly focused on nursing home and health care fraud in recent years. In March 2020, the DOJ launched the National Nursing Home Initiative to combat substandard care and fraud in nursing homes. That same year, in September, the DOJ announced a historic nationwide enforcement action that netted 345 defendants across 51 federal districts. Those defendants were charged with submitting more than $6 billion in false and fraudulent claims to federal health care programs and private insurers.
The following fiscal year, the DOJ reported that it achieved 312 convictions, winning and negotiating over $5 billion in healthcare fraud judgments and settlements. In the 2022 fiscal year, the DOJ reported $1.7 billion in false claims cases involving the healthcare industry and 477 convictions for healthcare fraud.
Health care fraud-related convictions remained prevalent in FY 2023, with the DOJ reporting more than 476, with $1.8 billion in false claim cases. In one enforcement action in 2024, the DOJ reported that it recovered more than $2.75 billion in intended fraud loss from health care providers, charging 193 defendants.
Last year, the DOJ’s Health Care Fraud Unit operated 8 Health Care Fraud Strike Forces in 26 federal judicial districts to track and identify fraud schemes. Those efforts resulted in record recoveries under the False Claims Act, surpassing $6.8 billion.
What’s Next?
When the Trump Administration announced the new division, it highlighted its recent accomplishments in Minnesota regarding Medicaid fraud. Specifically, the administration stated that the Centers for Medicare and Medicaid Services paused Medicaid payments to 14 programs previously flagged for fraud, waste, and abuse.
Based on past and recent actions, it appears fraud-related cases will stay on the new division’s radar for the foreseeable future. Nursing homes and similar care facilities can anticipate a renewed and sharper focus on their operations.
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