DOJ will Create a National Fraud Enforcement Division

This month the White House announced that the United States Department of Justice (DOJ) will establish a new National Fraud Enforcement Division. The White House’s Fact Sheet regarding the initiative reveals a broad scope: bringing criminal and civil actions against “fraud targeting Federal government programs, Federally funded benefits, businesses, nonprofits, and private citizens nationwide.” The administration’s mandate for the new division is to “combat the rampant and pervasive problem of fraud in the United States.” 

Within DOJ, fraud enforcement has traditionally been handled by U.S. Attorneys’ Offices in each district (pursuing local cases), together with specialized units at Main Justice in Washington DC: the Criminal Division’s Fraud Section (one of DOJ’s largest units, with ~150 prosecutors focusing on areas like health care fraud, foreign corruption, securities fraud, and government program fraud); and the Civil Division’s Fraud Section, which leads False Claims Act (FCA) enforcement nationwide. The National Fraud Enforcement Division is expected to cut across usual geographic and departmental lines, and will oversee DOJ’s “efforts to investigate, prosecute, and remedy fraud affecting the Federal government, Federally funded programs, and private citizens.” It remains unclear how this will be operationalized and structured, but it is apparent that the creation of this new division aims to centralize strategic control and direction over fraud-related matters. 

The division will be run by a new Assistant Attorney General (to be appointed by the President and confirmed by the Senate), who will have extensive authority and influence regarding fraud enforcement across the country. During the White House’s press briefing, Vice President J.D. Vance noted that the new AAG will have “nationwide jurisdiction over the issue of fraud” and will oversee multi-agency fraud investigations. They will also advise the Attorney General on issues involving “high-impact” fraud investigations and related policy, develop and set national enforcement priorities, and propose legislative and regulatory reforms. The Vice President also announced that this new division “will be run out of the White House under the supervision of [the Vice President] and the President.” This is a departure from longstanding DOJ policy where division heads report to the Attorney General and typically have limited communications with the White House to maintain the Department’s independence.

There are still a lot of open questions as to how the National Fraud Enforcement Division will operate, but the move signals that fraud enforcement remains a top-level priority for this administration.

Healthcare fraud and abuse will likely be a key area of focus.

Health care fraud is consistently identified as a prime target of federal enforcement activity, and this new initiative is likely to reinforce that focus. Notably, the National Fraud Enforcement Division announcement came days before DOJ’s announced that FCA settlements and judgments exceeded a record-breaking $6.8 billion in Fiscal Year 2025. Enforcement actions against healthcare organizations have consistently been a leading source of federal fraud recoveries under the FCA—accounting for 83% ($5.7 out of the $6.8 billion) in FY 2025 and 58% ($1.67 out of $2.9 billion) in FY 2024. Given that reality, it’s safe to assume the National Fraud Enforcement Division will devote substantial attention to healthcare-related fraud schemes. 

The timing of this new DOJ division underscores an already intensifying fraud enforcement climate for healthcare entities. Last year, DOJ and HHS announced a cross-agency collaborative partnership focused on advancing healthcare fraud enforcement priorities through a joint FCA Working Group. In 2025, DOJ also announced a “National Health Care Fraud Takedown,” which resulted in criminal charges against 324 defendants in 50 federal districts and 12 State Attorneys General’s Offices across the United States, for their alleged participation in various health care fraud schemes involving over $14.6 billion in intended loss—the largest “takedown” in history. Moreover, we are continuing to see more and more collaboration across government agencies—HHS, DHS, FDA and others working with DOJ—with respect to their enforcement activities and implicating FCA liability exposure. The creation of the National Fraud Enforcement Division dovetails with these efforts and portends a more aggressive enforcement environment ahead. 

While the details regarding this to-be-created division are still limited, one thing is clear: healthcare legal and compliance teams should be prepared for an increase in both the frequency and coordination of fraud investigations.

Reed Smith will continue to follow health care fraud and abuse developments. If you have any questions or need assistance developing a robust compliance program or navigating government investigations, please do not hesitate to reach out to the author or the health care attorneys at Reed Smith.