In January 2026, the Trump Administration announced the creation of the National Fraud Enforcement Division (NFED) within the Department of Justice (DOJ), aiming to centralize efforts to combat fraud against federal programs and taxpayer funds. ([whitehouse.gov](https://www.whitehouse.gov/fact-sheets/2026/01/fact-sheet-president-donald-j-trump-establishes-new-department-of-justice-division-for-national-fraud-enforcement/?utm_source=openai))
On July 2, 2026, Representatives Brad Finstad (R-MN) and Derek Schmidt (R-KS) introduced House Bill 9576, seeking to formally establish the NFED in federal law. The bill has been referred to the House Committee on the Judiciary for further consideration. ([legiscan.com](https://legiscan.com/US/bill/HB9576/2025?utm_source=openai))
The NFED’s mission encompasses investigating and prosecuting fraud targeting federal government programs, federally funded benefits, businesses, nonprofits, and private citizens nationwide. ([justice.gov](https://www.justice.gov/fraud/about-national-fraud-enforcement-division?utm_source=openai))
In April 2026, Acting Attorney General Todd Blanche issued a memorandum detailing the NFED’s structure and operational framework. The division consolidates several DOJ units, including the Tax Section, Health Care Fraud Unit, and Market, Government, and Consumer Fraud Unit, under a unified leadership structure. ([lw.com](https://www.lw.com/en/insights/doj-establishes-national-fraud-enforcement-division?utm_source=openai))
Colin McDonald, previously an Associate Deputy Attorney General, was nominated to lead the NFED as Assistant Attorney General. His nomination was discussed in a Senate Judiciary Committee hearing in February 2026. ([durbin.senate.gov](https://www.durbin.senate.gov/newsroom/press-releases/durbin-delivers-opening-statement-during-senate-judiciary-committee-hearing-on-nominee-to-be-assistant-attorney-general-for-newly-established-national-fraud-enforcement-division-at-doj?utm_source=openai))
The establishment of the NFED and the subsequent legislative efforts to codify it reflect a concerted push to enhance the DOJ’s capacity to address fraud affecting federal resources and programs.