On April 7, 2026, the Department of Justice (DOJ) announced it is “supercharging” fraud prosecutions through the creation of the National Fraud Enforcement Division (the “Fraud Division”).

What Has Changed

The new office consolidates the Criminal Division’s Tax Section, Health Care Fraud Unit and the Market, Government, and Consumer Fraud Unit. It remains unclear whether the Criminal Division’s other fraud units will stay independent, though a recommendation on the final makeup of the Fraud Division was due to Acting Attorney General Todd Blanche in early May 2026. At a press conference, Blanche stated that the public servants who become part of the Fraud Division will “have the entire department’s support as you work to protect the financial integrity of our entire government and the tax system that supports it.”

Touted by Blanche as the country’s first “comprehensive and coordinated approach” to combating fraud, the “core mission” of the new Fraud Division will be to “zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars.” The Fraud Division is headed by Colin McDonald, formerly an associate deputy attorney general for Blanche’s office. While McDonald will report to Blanche and other senior DOJ leadership, the Fraud Division will also accept referrals from the White House. McDonald’s role will also include advising on national fraud enforcement priorities and proposing legislative and regulatory reforms aimed at addressing systematic vulnerabilities identified by the Fraud Division.

Scope of the New Division

The Trump administration has made clear that the new Fraud Division will involve nationwide, multiagency cooperation. A memo to DOJ employees stated that every U.S. Attorney’s Office will assign a prosecutor to the Division. DOJ’s grant-making components have also been directed to establish a program that will allow local and state prosecutors to participate as Special Attorneys or Special Assistant U.S. Attorneys. In addition, the FBI will work to make more agents available to assist with fraud investigations.

Currently, the Civil Division, which is responsible for False Claims Act (FCA) enforcement, will not shift staff to the Fraud Division. However, the Civil Division has been directed to appoint a liaison to the new office, and the Office of Legal Policy is also determining whether “non-criminal elements” of DOJ should be assigned on a permanent basis. At minimum, the installation of a liaison suggests that there may be increased joint enforcement under the Civil, Criminal, and Fraud Divisions going forward.

Notably, two of the units that will be housed under the Fraud Division, the Health Care Fraud and Market, Government, and Consumer Fraud Units, both announced significant victories in 2025 in terms of monetary recoveries and volume of prosecutions. Blanche affirmed that these areas remain priorities for DOJ as the Division will focus on healthcare fraud, including hospice fraud, as well as tax fraud, benefits fraud, and other schemes targeting taxpayer-funded programs.

Looking Ahead

DOJ’s swift direction of resources to the Fraud Division suggests that fraud enforcement will be a key priority of the Trump administration in the coming months. On May 8, 2026, DOJ issued a press release touting sentencing and indictments for fraud schemes representing over $1 billion and spanning the healthcare, government procurement, tax, benefits programs, and financial sectors.

The Fraud Division has begun to show its prosecutorial priorities as its resources are finalized. For example, on April 30, 2026, DOJ announced the formation of the Division’s West Coast Health Care Fraud Strike Force, “a multi-district enforcement initiative uniting the Division’s Health Care Fraud Section with the U.S. Attorney’s Offices for the District of Arizona, District of Nevada, and Northern District of California.” Companies in highly regulated sectors should monitor these initiatives and developments closely to ensure they are prepared for possible government scrutiny.