White House Announces New Department Of Justice Division For National Fraud Enforcement

On January 8, 2026, the White House announced the establishment of a new division within the U.S. Department of Justice ("DOJ") focused on national fraud enforcement. The initiative is designed to centralize and strengthen the federal government's response to fraud schemes that target federal government programs, federally funded benefits, businesses, non-profits, and private citizens throughout the country.

The new Assistant Attorney General ("AAG") in charge of this new division is tasked with developing national enforcement priorities, managing multi-district and multi-agency fraud investigations, providing direction and assistance to United States Attorney's offices regarding fraud matters, and to work with the DOJ and federal agencies to eliminate sophisticated fraud schemes across various jurisdictions. The AAG will also propose legislative and regulatory reforms to tackle these priorities. While the new division is still in its beginning phase, it appears its current focus is on statewide fraudulent schemes being uncovered in Minnesota.

Currently, multiple investigations are being conducted into Minnesota healthcare and home care providers, childcare programs, and housing-assistance programs. According to the White House, the DOJ has already charged 98 defendants in Minnesota fraud-related cases and is now doubling the number of attorneys handling these matters. Other agencies, such as the Federal Bureau of Investigation, Department of Homeland Security ("DHS") and the Department of Health and Human Services ("HHS"), have also dedicated resources to combat fraud in Minnesota, including the FBI's deployment of forensic accountants and data analytic teams and DHS sending approximately 2,000 agents to the midwestern state to conduct door-to-door investigations. Still more civil executive agencies, like the Small Business Administration ("SBA") and the Department of Labor, are also conducting their own investigations into suspected fraudulent activity to ensure compliance with their respective programs.

Businesses who utilize federal government programs, such as healthcare providers and SBA loan recipients, should expect an increase in the pace and volume of criminal and civil fraud investigations. To prepare, companies should ensure the accuracy of compliance programs and monitor changes in any enforcement priorities. These companies should also verify that government funds are being used appropriately by themselves and any downstream entities receiving the benefit of those funds.

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