Vice President Vance Announces The DOJ’s Plan to Hunt Down Stolen Tax Dollars

By The Blog Source

In addition to creating a new Assistant Attorney General position with broad authority to look into and prosecute fraud targeting federal programs nationwide, Vice President JD Vance announced Thursday that the Trump administration is establishing a new national fraud enforcement arm within the Department of Justice.

Although Vance made it apparent that the endeavor will go far beyond a single state, it will start in Minnesota, where federal investigators claim that misuse of taxpayer-funded programs has reached startling levels. Vance described a systemic issue that has defrauded Americans from coast to coast, saying, "We are creating a new assistant attorney general position who will have nationwide jurisdiction over the issue of fraud."

A White House fact sheet states that the new DOJ division will coordinate interagency investigations, advise senior DOJ leadership on reforms to close gaps that permit widespread abuse, and concentrate on criminal and civil enforcement involving fraud against federal benefits, grants, nonprofits, businesses, and private citizens.

Vance mentioned that fraud depletes funds intended for Americans who truly qualify for aid, framing the crackdown as an issue of justice for working families. He pointed to childcare and early education programs as excellent examples, stating that they should not be diverted through organized fraud schemes but rather assist parents who are having financial difficulties paying for daycare and preschool.

Vance specifically mentioned abuse associated with illegal immigration, claiming that such programs make it more difficult for inhabitants of the United States to obtain services that are legally required. The Department of Homeland Security, which has sent over 2,000 agents to the state and arrested over 1,000 criminal illegal aliens in recent weeks, is among the federal agencies that have already poured resources into Minnesota under the larger operation.

According to DHS authorities, Operation Twin Shield has already identified over 1,300 possible fraud instances in just Minneapolis and St. Paul.

Other agencies are implementing parallel measures. While the Small Business Administration has suspended almost 6,900 borrowers and stopped all grant payments to the state, the Department of Health and Human Services has blocked payments to 14 Medicaid programs in Minnesota and launched investigations into Head Start and daycare operations.

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Additionally, DOJ investigators are looking into fraud schemes exposed by citizen journalist Nick Shirley, whose widely shared reports revealed closed medical and childcare establishments that purportedly received millions of dollars in federal money. Shirley said his team found more than $110 million in dubious spending in a single day, and Vance hailed his efforts as "far more useful journalism" than prior Pulitzer Prize winners.

When questioned about Minnesota Governor Tim Walz, Vance criticized Walz's leadership as a failure and said that investigators will find out if the governor's administration only allowed fraud or actively took part in it.

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Vance declared, "I don't care what Tim Walz says," adding that upholding immigration law and recouping embezzled public funds should come first. The administration's decision to block $10 billion in childcare and family assistance funding to five Democrat-led states—Minnesota, California, Illinois, Colorado, and New York—was largely influenced by the Minnesota findings.

HHS Deputy Secretary Jim O'Neill stated that the pause aims to restore public confidence in the lawful use of federal funds. Meanwhile, a new initiative called "Defend the Spend" enforces repayment guidelines for Medicaid benefits used by sponsored immigrants and now demands receipts and thorough explanations for childcare expenses.

Already, the crackdown is spreading westward. President Trump has declared that California is the subject of a fraud probe, accusing Governor Gavin Newsom of overseeing pervasive corruption.

The Department of Government Efficiency reports that since 2020, $382 million in fraudulent unemployment benefits have been found countrywide, with $305 million coming from California. Dana Williamson, Newsom's former chief of staff, has also been charged by DOJ prosecutors with 23 federal offenses, including false statements, conspiracy, wire fraud, and obstruction.

For the first time, the administration is bringing fraud enforcement under one command structure by appointing a new assistant attorney general with national jurisdiction. The clear objectives are to achieve faster investigations, coordinated prosecutions, and genuine repercussions for individuals who exploited federal programs for easy money.

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