The White House is finalizing plans for a new anti-fraud task force targeting welfare abuse in California and other states, according to multiple sources. President Donald J. Trump is expected to sign an executive order establishing the task force 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 manage day-to-day operations. The task force will also include Colin McDonald, a nominee for a newly created fraud investigator position at the Department of Justice who reports to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche.
California has been a focal point in recent fraud investigations, with state auditors previously identifying billions of dollars in fraudulent unemployment insurance claims and improper pandemic relief payments. Governor Gavin Newsom (D) has defended his state, asserting efforts have been made to recover funds and strengthen oversight.
Fraud concerns extend beyond California. Federal investigators estimate that welfare-related fraud tied to Somali networks operating in Minnesota could exceed $9 billion through alleged abuse of housing and food assistance programs. Additionally, federal prosecutors in Chicago recently charged foreign nationals in a massive Medicare fraud scheme involving more than $1 billion in false claims submitted using stolen identities.
In another recent development, Texas Attorney General Ken Paxton launched an investigation into H-1B visa fraud, alleging companies manipulated the federal program to use migrants to undercut American workers.
