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Reading: Donald Trump Signs Executive Order Targeting Hundreds of Billions in Federal Fraud
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Politics

Donald Trump Signs Executive Order Targeting Hundreds of Billions in Federal Fraud

Published on: March 17, 2026 at 6:03 AM ET

Donald Trump signed an executive order tasking JD Vance with leading a federal fraud crackdown.

Yusra Khan
Written By Yusra Khan
News Writer
Donald Trump pushes an aggressive move against widespread federal fraud.
Donald Trump pushes an aggressive move against widespread federal fraud./ Credits: Wikimedia Commons/ Photograph by Gage Skidmore

An executive order signed Monday by President Donald Trump will create a wide-ranging anti-fraud task force that will be led by Vice President JD Vance. The move will place the Cincinnati Republican in charge of what may be the most significant government initiative in U.S. history.

The initiative will focus on Democratic states led by individuals who may have aspirations to become President in 2028. Speaking at a White House ceremony, Trump asked Vance to lead a “whole of government approach” to combat what he said were hundreds of billions of dollars in improper payments flowing through our federal healthcare and social service systems.

Donald Trump asserted, “If we found half the fraud in this country… we would have a balanced budget,” underscoring the scale of alleged financial abuse. He followed with a remark suggesting he expected Vice President JD Vance to take the role seriously rather than treat it as symbolic, pointing to his predecessor.

JUST IN🚨: Press Secretary Leavitt says Trump and Vance will launch their task force against fraud today.

“This is another promise made, and kept by President Trump… to establish a whole-of-government effort to fight fraud at both the state and federal level.” pic.twitter.com/fPn7JM7WR1

— Officer Lew (@officer_Lew) March 16, 2026

“This will not be like a Kamala,” he said, referencing former Vice President Kamala Harris‘s tenure as border czar. “I promise, sir,” Vance answered. Trump had earlier announced that Vance would head the task force, marking one of the first major dedicated assignments for the vice president in the administration, as reported by Just The News.

The public welfare fraud case continues to be in the spotlight following the public outcry over the massive public funds embezzlement in Minneapolis, Minn., in the Somali expat community. The public fraud schemes, which involved diverting federal funds from state public service programs in the early 2020s, have cost the public an estimated $9 billion and have resulted in about 50 convictions.

“This is a very important whole-of-government approach,” Vance said, before referencing a fraud ring already uncovered by the Trump administration in which Somalis allegedly misused autism therapy funding. “That kind of fraud is one example of probably hundreds just within the state,” he said.
Federal agencies such as the Treasury and Justice Departments would be required to cooperate and share intelligence under a new executive order, ending a lack of coordination that had limited their ability to act jointly against fraud, according to the administration.

Before signing the deal, Trump had said that the people involved had the potential to do something that was extremely beneficial for the country. He had also said that it was not possible to achieve a balanced budget when $19 billion was being stolen. He had also explained that half of the existing fraud could lead to something much more than a balanced budget.

President Donald J. Trump Establishes the Task Force to Eliminate Fraudhttps://t.co/dKOMPXPVuS

— Karoline Leavitt (@PressSec) March 16, 2026

Trump announced this plan in his State of the Union speech held on February 25. He appointed his vice president, JD Vance, to lead this fight against fraud. Within a matter of days, his vice president held a press conference to discuss what steps they would be taking. This included denying $259 million in Medicaid reimbursements to Minnesota and imposing a six-month pause in registering durable medical equipment providers.

Moving on to political opponents, Trump said that it should not be seen in a partisan light but that it happens more often in states that are run by Democrats. He said that states run by Republicans will also be checked in case it is necessary, but that it seems to be more prevalent in states that are run by Democrats.

Trump specifically targeted California and Illinois during the signing event, both being states run by Democrats that are thought to have potential in running in the 2028 presidential elections. He said that in California, it is a much bigger problem than in Minnesota and that he has a lot to say about Governor Gavin Newsom, whose favorability has dipped, as well as Illinois Governor JB Pritzker.

TAGGED:Donald TrumpJD VanceKamala Harris
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