Fact Sheet: President Donald J. Trump Establishes New Department of Justice Division for National Fraud Enforcement

1/8/2026

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Action Summary

New DOJ Division: Establishment of a dedicated national fraud enforcement division to combat fraud affecting Federal programs, businesses, nonprofits, and private citizens.
Leadership and Responsibilities: The Assistant Attorney General will lead multi-district and multi-agency investigations, set national enforcement priorities, advise top DOJ officials, and propose legislative/regulatory reforms to close vulnerabilities.
Comprehensive Investigations in Minnesota:
- DOJ Efforts: Multiple active investigations targeting fraud in state programs such as Feeding Our Future, Housing Stabilization Services, and Early Intensive Developmental programs; over 1,750 subpoenas, 130+ search warrants, and 1,000+ witness interviews executed.
- Prosecutions: 98 defendants charged (including 85 of Somali descent), with 64 convictions in fraud-related cases; increased DOJ resources by doubling attorney involvement.
- FBI Involvement: Probing healthcare and home care providers with forensic and data analytics, investigating potential links to elected officials and terrorist financing.
Multi-Agency Enforcement Actions:
- DHS: Deployment of approximately 2,000 agents conducting door-to-door investigations, with over 1,000 arrests of criminal illegal aliens and identification of more than 1,300 fraud findings during Operation Twin Shield.
- HHS and CMS: Freezing childcare payments, enforcing repaying of Medicaid benefits for sponsored immigrants, and pausing Medicaid payments to 14 flagged Minnesota programs amid noncompliance concerns.
- SBA Actions: Suspension of annual grant payments and banning of 6,900 borrowers with suspected fraudulent activity, totaling around $400 million in fraud.
- HUD, DOL, USDA: Investigations into housing-assistance fraud, targeted review of Minnesota’s Unemployment Insurance program, and mandated recertification for SNAP recipients to ensure eligibility compliance.

Risks & Considerations

The establishment of a new Department of Justice division for national fraud enforcement indicates a heightened focus on prosecuting fraud related to federal programs and benefits. This could lead to increased scrutiny of federally funded projects and grants at Vanderbilt University.
With the DOJ’s emphasis on multi-district and multi-agency investigations, there could be a risk of enhanced regulatory audits and compliance checks for any federally funded initiatives involving the university.
The legislative and regulatory reforms proposed by the new division might affect existing funding structures and compliance requirements, necessitating updates to Vanderbilt’s policies and procedures.
If similar investigations or enforcement actions expand nationwide, Vanderbilt may face potential impacts on federal funding, particularly if future fraud prevention measures become more stringent.

Impacted Programs

Office of Sponsored Programs may need to increase vigilance in compliance and auditing processes to ensure adherence to new federal guidelines and prevent potential investigations.
Vanderbilt’s Research Centers involved in federally funded projects could see an impact on funding and operational oversight, requiring adjustments to project management and reporting practices.
The Grants Management Office might need to revise its procedures to align with any new federal fraud prevention measures, ensuring all projects meet heightened scrutiny standards.

Financial Impact

Increased enforcement and scrutiny could lead to delays in receiving federal funds or necessitate additional administrative resources to comply with new requirements, impacting Vanderbilt’s financial planning and resource allocation.
Potential regulatory changes could affect the university’s eligibility for certain grants, requiring strategic adjustments in grant applications and collaborations with federal agencies.
The university may need to allocate more funds towards compliance and legal advisement to navigate the increased regulatory environment effectively.

Relevance Score: 4 (The executive action presents potential major changes or transformations of federally funded programs and compliance procedures at Vanderbilt University.)

Key Actions

Vanderbilt’s Office of Federal Relations should monitor developments within the Department of Justice’s new division for national fraud enforcement. Keeping abreast of enforcement priorities and legislative reforms can help the university anticipate changes that may affect research funding and compliance requirements.
The Peabody College of Education and Human Development may consider conducting research on the impact of fraud enforcement on federal programs related to education and social services. This research could provide valuable insights into policy effectiveness and inform future educational initiatives.
Vanderbilt’s Law School could explore opportunities for collaboration with the DOJ or provide expertise in fraud-related legal matters. Engaging in legal research or offering consultancy services could enhance the school’s profile and influence in legal education and practice.
The Financial Affairs Office should review internal controls and compliance measures related to federal funding and grants. Ensuring robust fraud prevention strategies will mitigate risks associated with increased federal scrutiny.
Vanderbilt’s Data Science Institute could investigate opportunities to collaborate with federal agencies on data analytics projects, specifically in fraud detection and prevention. This initiative could position Vanderbilt as a leader in the application of data science in public policy.

Opportunities

The establishment of the new DOJ division offers Vanderbilt’s Public Policy Studies Program an opportunity to engage in policy analysis regarding the effectiveness of fraud enforcement strategies. Producing policy recommendations could enhance Vanderbilt’s reputation as a thought leader in public administration.
By hosting conferences or workshops on fraud prevention and detection, Vanderbilt can position itself as a hub for interdisciplinary research and collaboration in legal, social, and data science fields. This could attract funding and partnerships with governmental and non-profit organizations.
The increased focus on fraud enforcement may lead to new research funding opportunities for Vanderbilt’s School of Medicine in the area of healthcare fraud. Pursuing grants related to healthcare compliance and fraud prevention would align with national priorities and expand research capabilities.

Relevance Score: 3 (The creation of the new DOJ division may require some adjustments in compliance, research focus, and strategic partnerships.)

Average Relevance Score: 2.8

Timeline for Implementation

N/A – No explicit deadlines or timelines for implementation are provided in the directive summary.

Relevance Score: 1

Impacted Government Organizations

Department of Justice (DOJ): The establishment of a new division for national fraud enforcement and oversight of fraud investigations nationwide directly impacts the DOJ, including its multi-district investigations and policy development efforts.
Federal Bureau of Investigation (FBI): The FBI is actively involved in investigating fraud-related allegations in Minnesota, specifically in health care and home care fraud cases.
Department of Homeland Security (DHS): DHS is engaging in extensive fraud investigations in Minnesota, including targeted operations and enforcement actions affecting immigration and fraud-related issues.
Department of Health and Human Services (HHS): HHS is taking measures such as freezing childcare payments and enforcing repayment for Medicaid benefits, and is investigating fraud in programs like Head Start.
Centers for Medicare and Medicaid Services (CMS): As a component of HHS, CMS is directly involved by halting Medicaid payments in Minnesota pending further audits.
Small Business Administration (SBA): The SBA is impacting Minnesota by suspending annual grant payments and curtailing loan program access due to suspected fraudulent activities.
Department of Housing and Urban Development (HUD): HUD has deployed a team to Minnesota to investigate potential housing assistance fraud.
Department of Labor: This agency is conducting a targeted review of Minnesota’s Unemployment Insurance program to address fraud issues.
Department of Agriculture: The agency is requiring recertification for SNAP recipients in Minnesota to ensure compliance with eligibility criteria, addressing concerns of fraud.

Relevance Score: 3 (Between 6 and 10 federal agencies are impacted by this executive action.)

Responsible Officials

Assistant Attorney General (Department of Justice – National Fraud Enforcement Division) – Tasked with leading the new division to investigate, prosecute, and remediate fraud across Federal programs, businesses, nonprofits, and private citizens.
Attorney General and Deputy Attorney General (Department of Justice) – To be advised by the new division on high-impact fraud investigations and related policy reforms.

Relevance Score: 3 (Directives affect senior agency-level leadership responsible for implementing the new division’s mandate.)