Vice President JD Vance announced Thursday the creation of a new assistant attorney general position within the Department of Justice, specifically tasked with targeting large-scale fraud schemes — starting in Minnesota and expanding across the nation.
The move follows mounting evidence of widespread abuse of taxpayer-funded programs, including fraud tied to fake daycare centers, stolen welfare funds, and misused COVID-era relief loans. The new DOJ position will oversee prosecutions and coordinate enforcement actions across federal agencies.
“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 said. “That person’s efforts will start and focus primarily in Minnesota, but it is going to be a nationwide effort.”
Vance singled out states like Minnesota, California, and Ohio as hotspots for abuse of federal funding, especially programs meant to support children and low-income families. He emphasized the need to protect taxpayer money and restore integrity to benefit systems.
“If you’re a young parent struggling to afford childcare in the United States of America, there are programs to help,” Vance said. “Those programs should go to American citizens, not be defrauded by Somali immigrants and others.”
Senator Chuck Grassley, chairman of the Senate Judiciary Committee, praised the announcement and said he looked forward to reviewing the president’s nominee. “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,” Grassley posted.
The action comes after the Department of Health and Human Services temporarily halted childcare payments to Minnesota, citing ongoing investigations into fraudulent daycare centers. Some centers had collected millions of dollars over the past decade despite numerous violations and little sign of actual childcare being provided.
SBA Administrator Kelly Loeffler recently reported that her agency had identified around $400 million in potentially fraudulent pandemic relief loans tied to Minnesota alone. As a result, nearly 7,000 borrowers in the state were suspended from receiving future SBA funding.
The administration also froze key federal programs in several other blue states as investigations widen. Funding under the Child Care Development Fund, the Temporary Assistance for Needy Families program, and the Social Services Block Grant program was paused in California, Colorado, Illinois, Minnesota, and New York while authorities examine whether benefits were being illegally diverted to non-citizens.
Vance said more aggressive oversight and prosecution is on the way.
“This isn’t about politics. This is about protecting the American taxpayer,” he said. “And it starts right now.”
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