Key Takeaways

New Fraud Division: The White House announced the creation of a new DOJ Division for National Fraud Enforcement, signaling a more coordinated, nationwide approach to civil and criminal fraud investigations and increasing the likelihood of multi-district and parallel enforcement actions.
Heightened Scrutiny of Federal Program Participation: Organizations and individuals that receive federal funds or participate in federally supported programs should expect sustained focus on compliance, reporting accuracy and internal controls governing the use of government resources.
Compliance Considerations: The new division underscores the need to monitor guidance and proactively assess fraud and compliance risk.

The White House announced the creation of a new Department of Justice (DOJ) Division for National Fraud Enforcement on Jan. 8, 2026, signaling an expanded and more centralized federal approach to fraud investigations and prosecutions. The new division reflects the administration’s stated priority to more aggressively address fraud across government programs and federally funded activities.

Scope of the Division

The division will be led by a newly appointed Assistant Attorney General and will have responsibility for coordinating complex, multi-district fraud investigations and prosecutions nationwide. When announcing the new division, Vice President Vance stated that the new Assistant Attorney General heading the division will be supervised directly by President Trump and Vice President Vance, a departure from longstanding reporting structures in the DOJ. The nominee for the position will require Senate confirmation.

According to the White House, the division will oversee the enforcement of federal fraud statutes affecting government programs and taxpayer funds; coordinate closely with U.S. Attorneys’ Offices and other federal agencies; develop national fraud enforcement priorities and policy recommendations; and support legislative or regulatory reforms to address perceived systemic fraud risks. It is likely that the False Claims Act will serve as a key statutory enforcement mechanism for the new division.

Practical Implications

The creation of this division may result in heightened scrutiny of activities tied to federally funded programs and other reimbursement or grant-based initiatives. The centralized structure suggests a greater likelihood of coordinated civil and criminal enforcement actions, including parallel investigations and increased data sharing among federal agencies. Organizations should expect a continued focus on compliance with program eligibility requirements; accuracy in reporting and certifications; appropriate use of federal funds; and internal controls designed to detect and prevent misconduct. The division’s role in shaping enforcement priorities and advising DOJ leadership may also accelerate enforcement initiatives targeting perceived fraud, waste and abuse.

Organizations and individuals with exposure to federal programs should consider reviewing and strengthening compliance programs, internal reporting mechanisms and audit processes. Monitoring DOJ guidance and enforcement trends associated with the new division will be important, as will early engagement with counsel when responding to government inquiries, audits or investigations.

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