Trump Administration Expands Fraud Crackdown Across Medicaid, Immigration, and Federal Benefits Programs

by Emmitt Barry, Worthy News Washington D.C. Bureau Chief

(Worthy News) – The Trump administration is widening its campaign against waste, fraud, and abuse in the federal government after investigators reportedly uncovered sweeping schemes involving Medicaid-funded home health businesses, food benefit theft, student visa exploitation, and immigration fraud across the United States.

The effort gained national attention after federal prosecutors charged more than 70 people in a massive COVID-era food program fraud case in Minnesota. Many of the defendants were connected to the state’s Somali immigrant community and were accused of siphoning federal nutrition funds meant to feed children.

But officials now say Minnesota was only the beginning.

Recent investigations have pointed to broader vulnerabilities in federally funded programs, including home health and personal care services. In Ohio, reporters found that billions in taxpayer dollars flowed into home healthcare companies, some with questionable credentials. One Columbus office building reportedly housed 94 companies that collectively billed taxpayers $66 million over several years.

These programs often pay individuals to provide non-medical care — including cooking, cleaning, and companionship — sometimes for their own relatives. Because the work is performed inside private homes, federal officials say oversight can be weak and fraud difficult to detect.

President Donald Trump earlier this year established a national task force to combat welfare fraud, placing Vice President JD Vance in charge. The task force has already moved against hundreds of hospice and home health providers in California and announced Wednesday that it would halt $1.4 billion in federal funding for home health and hospice providers nationwide.

Vance also warned all 50 states that they must prove they are aggressively policing Medicaid fraud or risk losing federal funds.

“We’re a generous country. We’re generous people. I love that about this country,” Vance said. “But part of that generosity is that it extends to our fellow Americans. We cannot give Medicare and Medicaid benefits to everybody all over the world.”

Dr. Mehmet Oz, who leads the Centers for Medicare and Medicaid Services, said officials also suspect foreign involvement in some benefit fraud schemes, citing alleged Russian-linked activity in Los Angeles and Chinese-linked fraud in New York.

Federal prosecutors have already brought cases involving foreign nationals accused of exploiting food assistance programs. Last month, five Romanian nationals were charged in an alleged conspiracy to steal nearly $1 million in food benefits in Ohio and California. Another Romanian national was sentenced last year to 10 years in prison for stealing more than 36,000 EBT card numbers using skimming devices.

The crackdown is also extending into immigration.

U.S. Citizenship and Immigration Services has created a special investigative team with expanded enforcement authority to pursue immigration fraud, including fraudulent applications and potential denaturalization cases. USCIS Director Joseph Edlow said the agency intends to send a clear message that applicants who lie or conceal information will be found out.

Acting ICE Director Todd Lyons also announced that investigators had identified more than 10,000 foreign students claiming employment through “highly suspect employers” under the Optional Practical Training program, which allows foreign students to work in fields related to their studies.

Meanwhile, the Justice Department is seeking to revoke the citizenship of 12 naturalized Americans accused of obtaining citizenship fraudulently. The individuals came from several countries and were accused of offenses ranging from support for terrorist groups to firearms trafficking.

In Minnesota, USCIS also reported “mass patterns” of marriage and immigration fraud after Operation Twin Shield reviewed more than 1,000 immigration benefit cases in the Twin Cities area. Officials said 275 cases showed evidence of fraud, non-compliance, or public safety and national security concerns.

The administration’s message is clear: America’s generosity must not become an open door for criminal networks, foreign exploitation, or those who abuse systems intended to help the truly needy. At a time of historic national debt and growing strain on public services, the Trump administration is framing the crackdown as both a fiscal necessity and a matter of national sovereignty.

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