❓WHAT HAPPENED: The White House is finalizing plans for a new anti-fraud task force targeting welfare abuse in California and other states.
👤WHO WAS INVOLVED: Vice President J.D. Vance, Andrew Ferguson of the Federal Trade Commission (FTC), and Attorney General Pam Bondi.
📍WHEN & WHERE: The task force is expected to be announced later this month via executive order from President Donald J. Trump.
🎯IMPACT: The task force aims to tackle billions of dollars in fraud.
The White House is in the final stages of organizing a new federal anti-fraud task force aimed at combating the abuse of welfare and other taxpayer-funded programs, particularly in California, according to multiple sources. President Donald J. Trump is expected to sign an executive order establishing the task force and appointing Vice President J.D. Vance as its chairman, signaling an increased emphasis on fraud enforcement across federal programs.
Andrew Ferguson, chairman of the Federal Trade Commission (FTC), is slated to serve as vice chairman and manage the task force’s day-to-day operations. Ferguson has led several high-profile consumer protection efforts, including a multibillion-dollar settlement with Amazon and antitrust actions against major technology companies.
The task force will also include Colin McDonald, a nominee for a newly created fraud investigator position at the Department of Justice. McDonald would report to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche while coordinating closely with Vance and Ferguson. Sources say the initiative was partly driven by internal frustration within the administration over what it views as resistance from career Justice Department officials to advancing certain enforcement priorities.
California has been a focal point in recent fraud investigations. State auditors previously identified billions of dollars in fraudulent unemployment insurance claims and improper pandemic relief payments. Governor Gavin Newsom (D) has defended his state, claiming his administration has made efforts to recover funds and strengthen oversight.
Fraud concerns extend well beyond California, however. Federal investigators have estimated that welfare-related fraud tied to Somali networks operating in Minnesota could ultimately exceed $9 billion, following years of alleged abuse of housing and food assistance programs.
In another recent case, federal prosecutors in Chicago, Illinois, charged foreign nationals in a massive Medicare fraud scheme involving more than $1 billion in false claims submitted using stolen identities and fraudulent medical orders.
Separately, Texas Attorney General Ken Paxton recently launched a broad investigation into H-1B visa fraud, alleging companies may have manipulated the federal program to use migrants to undercut American workers.
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