WASHINGTON — On January 8, 2026, the Trump administration announced the creation of a new Department of Justice (DOJ) division focused on fighting fraud across the country. The specialized unit will investigate widespread fraud against federal programs, private businesses, and individual citizens.

The administration will appoint a new Assistant Attorney General to head the division. The White House says the official will work to fix program weaknesses, close loopholes, and lead investigations involving several agencies. This official will also decide which types of fraud are most important to focus on first nationwide.

Federal Surge in Minnesota

While the new division has a nationwide mission, federal authorities have recently focused heavily on Minnesota. According to the Department of Justice, federal prosecutors in the state have charged 98 people in fraud cases, resulting in 64 convictions. To manage the increased workload, the DOJ has doubled the number of fraud attorneys assigned to Minnesota.

In the weeks leading up to the January 8 announcement, the Department of Homeland Security (DHS) sent about 2,000 agents to Minnesota to investigate businesses and homes suspected of fraud. During this same period, DHS arrested more than 1,000 people who were in the country illegally and had criminal records. These arrests occurred during separate immigration operations and were not part of the fraud investigations.

Through a federal program called "Operation Twin Shield," authorities identified more than 1,300 cases of suspected fraud in Minneapolis and Saint Paul. Officials are reviewing these cases to see which ones need more investigation. These inquiries could lead to some people losing their citizenship or refugee status.

Additionally, the FBI is using financial experts and data teams to investigate dozens of healthcare and home care providers in the state. They are looking for fraud as well as potential links to elected officials or terrorist funding.

Funding Cuts and Program Changes

The federal crackdown has changed the funding and rules for several state-run programs. The Department of Health and Human Services (HHS) cut a total of $10 billion in funding that was shared among five states led by Democrats, including Minnesota.

Other federal actions include:

  • Medicaid: The Centers for Medicare and Medicaid Services (the federal agency that oversees Medicaid) stopped payments to 14 Minnesota programs. The state had already identified these programs as wasteful or fraudulent, and federal officials determined that the state’s Medicaid agency was failing to follow federal rules.
  • Small Business Support: The Small Business Administration (SBA) stopped giving annual grants to Minnesota. The agency also blocked 6,900 borrowers from all future federal loan programs after finding about $400 million in suspected fraud.
  • Food Assistance: The Department of Agriculture (USDA) ordered Minnesota to make SNAP (food assistance) recipients re-apply and prove they still qualify for benefits.