On April 7, 2026, Acting Attorney General Todd Blanche released a memo (the April Memo) outlining next steps for the newly created National Fraud Enforcement Division (NFED). The NFED, which was announced in January by Vice President J.D. Vance and will be overseen by Assistant Attorney General Colin McDonald, will focus on “zealously” investigating and prosecuting “those who steal or fraudulently misuse taxpayer dollars.” To accomplish this mission, NFED is centralizing (and redirecting) certain Department of Justice (DOJ) resources to increase enforcement of fraud related to government programs. The key takeaways from the April Memo are set out below.
Reallocation of DOJ Resources
Effective immediately, the Tax Section, Healthcare Fraud Unit, and Market, Government, and Consumer Fraud Unit are being placed under the operational control of the NFED. Additionally, the April Memo requires the Office of Legal Policy to recommend whether any other units within the DOJ with a similar mission to the NFED should fall under the NFED’s operational control. The Deputy Attorney General will make a final decision on realignment based on those recommendations.
To further assist in the NFED’s mission, a National Fraud Detection Center will be established to use data analytics to identify potential fraud across government programs. (We note that for years, the sections now being consolidated into the NFED already have been mining and analyzing data.) Additionally, the NFED requires that every U.S. Attorney’s Office designate an “experienced prosecutor” to be detailed-in-place to the NFED. The April Memo is silent about what this detailee’s responsibilities will be — or what happens to their current caseload.
The NFED’s Mandate
By creating the NFED and realigning key components of the DOJ’s Criminal Division within the NFED, the Trump administration is signaling it intends to continue its enforcement focus on fraud involving government programs, especially involving government benefits and health care. As part of this reorganization, the NFED will coordinate with federal agencies, as well as local law enforcement.
Short-Term Implications
While the April Memo provides far more detail than was previously published about the NFED, much of that detail relates to internal deadlines and processes. Whether and how quickly these organizational changes are implemented and whether it makes any difference in priorities or resources remains to be seen. In the short term, the shift in operational control between and among the various DOJ Criminal Units (and the potential for more units to shift) may delay ongoing investigations.
However, the full scope of the NFED’s mission is still unclear. For instance, within 120 days, the April Memo directs the Office of Legal Policy to provide a recommendation as to whether “non-criminal elements of the Department should be brought within the National Fraud Enforcement Division.” This could greatly expand the current scope proposed by the April Memo to include parallel proceedings, such as False Claims Act enforcement. Additionally, the April Memo directs the Office of Legal Policy to provide recommendations for strengthening “laws, regulations, and guidelines” related to fraud investigations, prosecutions, and penalties. Here, too, the April Memo provides no further details.
What You Can Do
The creation of the NFED is another signal that the DOJ has signaled to the public its intent to prioritize fraud enforcement, especially when it involves federal programs and resources. Accordingly, recipients of federal funding should continue to:
- Review and update internal compliance policies and procedures addressing federal funding requirements and related reporting obligations.
- Implement enhanced internal review procedures for federal funding applications and certifications to ensure compliance with program requirements.
- Refresh and retrain employees on the False Claims Act requirements, including accuracy of certifications submitted in connection with federal funding.
For additional information regarding these developments or related compliance considerations, please contact this article’s authors or your regular Foley & Lardner contact.
