Trump Administration Intensifies Nationwide Fraud Crackdown
The Trump administration is ramping up its efforts in the ongoing ‘war on fraud’. This comes in the wake of independent journalist Nick Shirley’s recent Senate testimony, which highlighted significant misuse of taxpayer dollars. Assistant Attorney General Colin McDonald announced that over $1 billion has been recovered from cases of trade fraud. Notably, Dr. Oz has also joined this initiative, bringing to light the millions of dollars in Medicaid funding that were reportedly stolen through fraudulent adult daycare centers in New York City. This points to a broader, troubling issue across the nation.
In another development, New York Attorney General Letitia James faced a setback in her legal battle against President Donald Trump regarding access linked to the Department of Government Efficiency (DOGE) to sensitive Treasury systems. A federal judge dismissed the lawsuit that she filed together with 18 other states earlier this week.
The lawsuit originated from an executive order issued by Trump in January 2025 that established DOGE, which mandated executive agencies to set up DOGE teams, with a termination date set for July 4, 2026. This coalition, spearheaded by James, argued that after the Treasury granted access to DOGE-associated employees for Bureau of the Fiscal Service systems—responsible for federal payments and sensitive financial information—they put state financial data at risk, overstepping legal boundaries.
U.S. District Judge Jeannette Vargas ruled that the claims concerning access to sensitive Treasury information by DOGE-affiliated employees were moot since the DOGE team had disbanded, meaning there were no employees left at the Treasury with access to these systems. Additionally, she dismissed the states’ concerns regarding a payment-review process because they hadn’t shown that any specific federal payment was directly affected.
Previously, in February 2025, Vargas had granted a preliminary injunction that restricted Treasury’s DOGE team from using these payment systems. Over time, this order was adjusted to allow access to personnel who complied with various vetting and training requirements.
The Executive Order issued by Trump was aimed at forming DOGE teams within each department to tackle issues of fraud, waste, and abuse ahead of the deadline. Letitia James has long been a vocal opponent of Trump, having previously initiated a civil fraud lawsuit against him and the Trump Organization in 2022, which derived from her campaign promises to investigate his business dealings.
This case led to significant penalties initially, totaling over $450 million, although an appeals court eventually upheld Trump’s liability while nullifying the financial sanction.
