The Trump administration is preparing to launch a new White House task force chaired by Vice President JD Vance to investigate fraud in taxpayer-funded programs, with California and Minnesota among the early focal points, according to multiple sources.
By yourNEWS Media Newsroom
President Donald Trump is expected to sign an executive order in the coming days formally establishing a White House anti-fraud task force that will be chaired by Vice President JD Vance, according to reporting by CBS News. The effort is designed to identify and address fraud, waste, and abuse in government-funded programs, with particular attention to California and other states where auditors and federal officials have documented extensive losses.
Under the plan described by the network, Andrew Ferguson, the current chairman of the Federal Trade Commission, is expected to serve as vice chairman of the task force and oversee its day-to-day operations. Ferguson would continue leading the FTC while simultaneously managing the daily work of the new White House group, sources told CBS News.
The task force is expected to operate independently from a parallel Justice Department initiative being developed under Colin McDonald, a Trump nominee for a newly created fraud-investigation role at the department. According to CBS News, McDonald’s work would remain within the Justice Department’s management structure, reporting to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche, while coordinating closely with Vance and Ferguson.
Sources familiar with the planning said the arrangement could raise concerns among Democrats and government watchdog groups about whether the White House might attempt to exert political pressure on McDonald to pursue investigations involving President Trump’s political adversaries. Administration officials, however, have described the structure as a response to frustration with existing fraud-enforcement mechanisms and resistance from some career staff who oppose elements of the president’s policy agenda.
Officials also told CBS News that the initiative reflects heightened interest within the administration in clamping down on fraud in taxpayer-funded programs. Vance announced the creation of a national fraud enforcement division last month, and the White House task force is expected to complement, rather than replace, that effort.
California is expected to be a major focus. State auditors have identified billions of dollars in fraudulent unemployment claims, pandemic relief payments, and health-care billings in recent years. Democratic Gov. Gavin Newsom has defended state efforts to recover funds and tighten oversight, even as auditors have repeatedly flagged systemic weaknesses. In a report highlighted by CBS News, state watchdogs noted that California lawmakers have, for more than a decade, failed to implement many audit recommendations addressing cost overruns, internal-control failures, and persistent oversight gaps.
During the COVID-19 pandemic, California’s Employment Development Department became a national example of large-scale fraud. An estimated $20 billion or more in unemployment-insurance payments were improperly issued, while many eligible claimants faced prolonged delays, according to NPR News.
Federal scrutiny has also intensified around hospice and home-health services in Los Angeles County. Last week, Centers for Medicare & Medicaid Services Administrator Mehmet Oz visited the region to highlight what officials describe as unusually high fraud risks linked to the rapid growth of hospice providers. One California physician reportedly billed the federal government $120 million in a single year while claiming to oversee roughly 1,900 patients, a volume that has raised questions about feasibility and potential abuse.
Los Angeles County alone has nearly 2,000 licensed hospice agencies, exceeding the combined total of more than 36 states and far outpacing states such as Florida and New York. “Hospice is crazy here,” Oz said. “You’ve got hospice that’s grown seven-fold in the last five years. They represent about three and a half billion dollars of fraud, we believe, just in LA County.”
In Minnesota, fraud concerns have also drawn national attention. Democratic Gov. Tim Walz dropped his reelection bid amid scrutiny of large-scale fraud involving child-care subsidies and other welfare programs. McDonald is expected to examine allegations of fraud in the state that were first publicized by YouTuber Nick Shirley and other independent journalists, according to sources cited by CBS News.
The timing of President Trump’s executive order could shift to later in the month, sources said. White House spokespeople declined to comment on the plans.
Beyond the anti-fraud initiative, Vance currently serves as vice chair of White House task forces for the 2026 FIFA World Cup and the 2028 Summer Olympics, and as finance chair of the Republican National Committee. He has also emerged as a leading public defender of the administration’s economic and immigration policies, frequently traveling to states to promote the president’s agenda.
At the FTC, Ferguson has continued aggressive litigation against major corporations, including technology companies, and has pursued consumer refunds. Amazon agreed in September to a $2.5 billion settlement, and the commission is appealing its antitrust case against Meta over its acquisitions of Instagram and WhatsApp.
Officials in Blanche’s office told sources they are still in the early stages of building the Justice Department’s new fraud division, including decisions about staffing, location, and information-technology infrastructure. It remains unclear how the new unit will be structured to avoid duplicating existing fraud-enforcement teams based in Washington, D.C., and in U.S. attorneys’ offices nationwide.
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