White House and DOJ Launch Aggressive New Anti-Fraud Division Targeting Government Ripoffs

On April 7, 2026, the White House and Department of Justice announced the formal launch of a new National Fraud Enforcement Division aimed at aggressively rooting out fraud against federal programs. Acting Attorney General Blanche declared that the division will “zealously investigate and prosecute those who steal taxpayer dollars,” pledging that DOJ will “spare no resources” in this mission.

This new division, headed by recently confirmed Assistant Attorney General Colin McDonald, represents a sweeping restructuring within DOJ’s Criminal Division. McDonald, a career prosecutor with experience in fraud, public corruption, and immigration, made clear at his swearing-in that no level of fraud will be ignored going forward.

The division consolidates the Health Care Fraud Unit, the Market, Consumer, and Government Fraud Unit (formerly the Market Integrity and Major Frauds Unit), and the Criminal Tax Section. These units were previously scattered across DOJ’s Criminal Division but now fall under McDonald’s leadership. This reorganization signals a major shift in how DOJ prioritizes fraud enforcement.

The division is already flexing its muscles. On the day of its launch, DOJ announced major fraud cases involving roughly $500 million in alleged theft from Medicare, Covid relief programs, telemedicine schemes, and medical equipment fraud. While these investigations were underway prior to the division’s creation, they now carry the new division’s banner.

To expand its reach, DOJ is establishing grant programs to enable state and local prosecutors to join the fight as Special Attorneys or Special Assistant U.S. Attorneys. Additionally, a hiring plan is underway to rapidly boost prosecutorial resources nationwide.

The division will also be supported by other DOJ units, including the Criminal Division Appellate Section and the Money Laundering, Narcotics, and Forfeiture Section. Meanwhile, a series of reports and recommendations on ongoing investigations, resource allocation, and potential structural changes are due in the coming weeks.

Critically, within 90 to 120 days, the Office of Legal Policy will review and suggest improvements to laws and guidelines related to fraud enforcement, potentially broadening the division’s scope to include non-criminal elements of DOJ.

This aggressive reorganization comes as part of the Biden administration’s broader push to hold accountable those who exploit government programs. But it also raises questions about how resources will be balanced across DOJ’s many priorities and whether this new division will maintain sustained focus beyond headline-grabbing cases.

We will be watching closely to see if this new National Fraud Enforcement Division lives up to its promise to be an unrelenting force against fraud or if it becomes another bureaucratic reshuffle with limited impact. One thing is clear: the administration wants to send a strong message that ripping off taxpayers will no longer be tolerated.