Vice President JD Vance announced the creation of a new assistant attorney general position in the Justice Department to prosecute fraud nationwide, with an initial focus on Minnesota. The move addresses allegations of widespread welfare and daycare fraud schemes, particularly those involving Somali immigrants. Senate Judiciary Chairman Chuck Grassley welcomed the initiative as positive news for taxpayers.
Vice President JD Vance revealed on Thursday the Trump administration's plan to establish a dedicated assistant attorney general role within the Justice Department to swiftly prosecute fraud cases across the United States. Speaking at a press briefing, Vance emphasized that the position would have nationwide jurisdiction but begin its efforts primarily in Minnesota, where allegations of extensive fraud have surfaced in recent weeks.
"To make sure that we prosecute the bad guys and do it as swiftly and efficiently as possible … we are creating a new assistant attorney general position who will have nationwide jurisdiction over the issue of fraud," Vance stated. He highlighted schemes defrauding programs intended for American families, such as childcare and preschool assistance, noting, "Those programs should go to American citizens, not be defrauded by Somali immigrants, and others." Vance linked the initiative to interagency actions targeting fraud in states including California, Minnesota, and Ohio.
The announcement comes amid heightened scrutiny of Minnesota's social programs. Last week, the Department of Health and Human Services paused all childcare payments to the state while investigating claims that millions in taxpayer dollars funded fraudulent daycares over the past decade. The Small Business Administration identified about $400 million in potentially fraudulent loans through programs like the Paycheck Protection Program, leading to the suspension of 6,900 Minnesota borrowers. Broader funding freezes affect childcare and food assistance in California, Colorado, Illinois, Minnesota, and New York, targeting programs like the Child Care Development Fund and Temporary Assistance for Needy Families.
Federal prosecutors estimate total fraud in Minnesota could reach $9 billion, including the $250 million Feeding Our Future scandal, where 90% of charged individuals are from the Somali community. The Justice Department has charged 98 people, with 60 pleading guilty; 85 defendants are of Somali descent, according to Attorney General Pam Bondi. A viral video by independent journalist Nick Shirley has accelerated investigations into daycare fraud.
Republicans have intensified calls for accountability. House Majority Whip Tom Emmer demanded Governor Tim Walz resign, stating on a podcast, "Tim Walz should resign, and if he doesn’t resign, he’s probably going to leave the office in cuffs." Walz recently suspended his reelection campaign and announced he will not seek a third term. Senators Marsha Blackburn and John Cornyn introduced the Fraud Accountability Act to enable denaturalization of fraudsters, with Blackburn declaring, "Anyone who comes to the United States and steals from American taxpayers by committing fraud should be deported."
Centers for Medicare & Medicaid Services administrator Dr. Mehmet Oz announced an audit of 14 Minnesota Medicaid programs and a pause in payments for suspected fraud. Senate Judiciary Committee Chairman Chuck Grassley praised Vance's announcement, posting on X, "Pres Trump/VP Vance’s announcement of a new Asst Atty General at Dept of Justice focused on fraud is GR8 NEWS 4 the American taxpayer."
