President Donald Trump's newly launched anti-fraud task force is moving aggressively to combat what officials say is a $250 billion annual drain on taxpayers, with Vice President JD Vance outlining a sweeping plan to crack down on abuse across federal programs.
According to a memo obtained by the Daily Wire, the task force, chaired by Vance and co-led by Federal Trade Commission Chairman Andrew Ferguson, is prioritizing prosecutions, prevention, and tighter oversight of programs most vulnerable to fraud.
The effort is aimed at stopping what the administration describes as a system "bleeding the federal government dry" and shortchanging honest Americans.
The memo outlines a four-part strategy focused on increasing fraud prosecutions, recovering stolen funds, deploying advanced data tools to detect abuse, and implementing reforms to prevent fraudulent payments before they occur.
Officials say the current "pay-and-chase" system — in which funds are distributed before verification — has led to significant losses, with only about $10 billion recovered annually.
"We cannot litigate ourselves out of the fraud problem," the memo states, noting that many fraudsters are unable to repay stolen funds even after prosecution.
The task force will target high-spending, low-verification programs, including Medicare and Medicaid, unemployment insurance, food assistance, housing programs, and small-business loans — areas that together account for trillions in federal spending each year.
The initiative comes after the Senate's Tuesday confirmation of Colin McDonald as the Justice Department's new assistant attorney general for fraud enforcement.
In that role, McDonald will oversee prosecutions tied to the administration's broader "war on fraud," which officials say is necessary to restore accountability and protect taxpayer dollars.
Supporters of the effort point to recent high-profile fraud cases, including pandemic relief scams and abuses in state-run aid programs, as evidence of systemic failures under previous policies.
The administration has also directed the task force to review whether the Biden administration failed to fully use available tools to prevent fraud.
The New York Post first reported that Trump formally established the task force on March 16 through an executive order, with a focus on fraud in states where oversight has been weak.
The order also calls for stronger identity verification standards, improved data sharing across agencies, and stricter auditing requirements.
Vance emphasized that fraud is not limited to isolated cases but often involves coordinated networks exploiting gaps in government systems.
He has also highlighted failures in interagency communication, where critical fraud data was not shared effectively among departments.
Critics have raised concerns about political influence over enforcement priorities, but administration officials say the effort is focused on protecting taxpayers and ensuring federal programs serve their intended purpose.
With billions at stake and public confidence in government programs on the line, the Trump administration says aggressive enforcement, combined with structural reform, will be central to its approach.
Charlie McCarthy ✉
Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.
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