Trump administration establishes new anti-fraud division under DOJ

To "combat the rampant and pervasive problem of fraud" in the United States, President Donald Trump's administration established a new national fraud enforcement division within the Department of Justice DOJ on Thursday, January 8, 2026.

Rights advocates and critics have said the Trump administration has used fraud allegations as an excuse to target immigrants and political opponents.

In recent weeks, the Trump administration has singled out Minnesota, alleging rampant fraud is being committed by immigrants in the welfare system and social-service programs, reports Reuters.

“To combat the rampant and pervasive problem of fraud in the United States, the DOJ’s new division for national fraud enforcement will enforce the federal criminal and civil laws against fraud targeting federal government programs, federally funded benefits, businesses, nonprofits, and private citizens nationwide,” the White House said in a statement.

Trump administration officials have frequently and sharply attacked the state’s Somali community, the largest in the country.

Rights and immigration advocates say Trump has exaggerated isolated examples and used those to engage in what they called federal overreach.

Earlier this week, the Trump administration said it would freeze more than $10 billion in federal childcare and family assistance funds to California, Colorado, Illinois, Minnesota, and New York, citing what the administration called fraud concerns.

The states later sued the Trump administration, citing that it has threatened federal funding cuts to organizations and states over a number of issues ranging from alleged fraud in programs in states governed by Democrats to diversity initiatives and pro-Palestinian university protests against U.S. ally Israel’s assault on Gaza.

While the White House responded that the assistant attorney general for the new DOJ division will be responsible for leading the department’s efforts to investigate, prosecute and remedy fraud affecting the federal government, federally funded programs and private citizens

It also added that the officials will advise the U.S. attorney general and deputy attorney general “on issues involving significant, high-impact fraud investigations and prosecutions and related policy matters.”

Furthermore, the White House informed that the DOJ is currently engaged in multiple active, ongoing and extensive investigations into the fraudulent activity that has occurred in various Minnesota programs, including the state's Feeding Our Future, Housing Stabilization Services,Early Intensive Developmental and Behavioural Intervention programs.

According to the White House, DOJ has charged 98 defendants in Minnesota fraud-related cases, 85 of whom are of Somali descent, and 64 of the defendants have already been convicted.

The Department of Homeland Security has sent roughly 2,000 agents to Minnesota and is conducting targeted, door-to-door investigations at locations suspected of fraud.

Meanwhile, the Department of Health and Human Services has cut off an additional 10 billion U.S. dollars in five Democrat-run states, including Minnesota, it added.