In an April 7, 2026 memo, Acting Attorney General Todd Blanche announced the creation of the National Fraud Enforcement Division. The Department of Justice (DOJ) describes it as a more coordinated, comprehensive way to investigate and prosecute fraud involving public funds. (Memorandum from Acting Attorney General Todd Blanche Regarding the Creation of the National Fraud Enforcement Division). The memo also points out DOJ has a long track record of going after fraud and holding bad actors accountable. In fact, the Fraud Section within the Criminal Division recently marked its 70th anniversary in its 2025 Year in Review (Fraud Section Year in Review | 2025), noting it was originally created in 1955 to tackle large-scale housing and procurement fraud after World War II, and to bring specialized expertise to the most complex and high-impact fraud cases facing America.
The new Division isn’t just focused on complex schemes or high-dollar fraud cases. While many of the prosecutors in the Fraud Section—like those in the Health Care Fraud Unit, the Market, Government, and Consumer Fraud Unit, and the Criminal Division’s Tax Unit—will now fall under the oversight of the National Fraud Enforcement Division, DOJ promises more resources are on the way. Additional Criminal Division personnel will likely come under the Division’s umbrella in the months ahead. And every U.S. Attorney’s Office in the country will be required to assign a prosecutor to support its work. As the April 7 memo states, this is not a “mere realignment” or a simple reshuffling of responsibilities. DOJ is expanding the National Fraud Enforcement Division into a robust litigation arm with the capacity to pursue any fraud involving taxpayer dollars, regardless of size.
This announcement is relevant to anyone involved with tax-payer funds:
- There may be increased risk for small businesses and/or fraud involving smaller dollar amounts. DOJ’s express intent to reach fraud at any scale, including small-scale fraud, may lead to increased prosecution of matters that may not have previously received attention or resources.
- Coordination is key to this initiative; what was once a local matter may be subject to federal scrutiny. The memorandum suggests a proactive approach in working with agencies who administer benefit programs, other federal and local law enforcement.
- There will be a focus on providing resources to prosecute fraud on public funds. DOJ promises to develop systems to identify fraud and provide prosecutors and law enforcement with “state-of-the-art tools and resources.” A National Fraud Detection Center will be “dedicated to identifying fraud across taxpayer-funded programs and generating leads for investigators and prosecutors.” As a result, investigations previously handled through civil or regulatory means may be more likely to be evaluated through a criminal fraud lens, particularly in healthcare, tax, and benefits administration.
- These additional resources may lead not just to greater criminal enforcement, but also civil enforcement. The memorandum mandates the Civil Division to designate a liaison to the Division to “ensure that the Department leverages the full range of enforcement tools—civil and criminal—to combat fraud against taxpayer dollars.” Companies may therefore face funding freezes, subpoenas, civil damages, and criminal exposure simultaneously. Proper documentation, internal controls, and escalation protocols are more critical than ever.
Given this announcement, we can expect to hear more in the coming months about the Department’s efforts to prosecute fraud on public programs. By deploying existing prosecutors to its new Division, announcements about the initiative’s achievements will likely come in short order. The investigations that would lead to charges are already underway. However, increased focus may expedite existing investigations, and allegations involving smaller dollar amounts may now be on the table.
