Vice President JD Vance is leading a major new initiative called the “war on fraud,” aimed at stopping what the Trump administration describes as widespread misuse of taxpayer dollars in federal programs. President Donald Trump officially announced the effort during his State of the Union address on February 24, 2026, naming Vance to spearhead it.
In an interview on Fox News’ “America’s Newsroom” the next day, Vance explained his role in detail. He said the administration wants to investigate how much fraud exists across the federal government, noting that no one has done a full, systematic review before. “I don’t know what the top line number is, and I think that’s unfortunate,” Vance stated.
Vance focused particularly on programs like Medicaid and childcare subsidies. He claimed that billions of dollars meant for American citizens are instead going to undocumented immigrants, or “illegal aliens,” through fraudulent claims. “How many illegal aliens are on Medicaid? We know that it’s billions and billions of dollars that should go to American citizens,” he said. He also pointed to fraudulent daycare centers, arguing that money intended to help American families afford childcare is being “stolen” by people in the country illegally.
The vice president suggested that some government officials might be complicit in the problem, possibly benefiting personally or through campaign donations. To tackle this, Vance said the effort will use a “full, whole government approach.” This includes involving the Justice Department and Treasury Department to conduct investigations, track financial records, and uncover how resources meant for citizens have been diverted to fraudulent uses.
Vance described the plan as something he and Trump discussed months earlier. “What if we just did everything that we could to stop the fraud that’s being committed against the American taxpayer?” he recalled asking. Trump reportedly responded positively, leading to the aggressive push now underway. While the main focus is on uncovering as much fraud as possible in the coming months and year, Vance indicated the “war on fraud” will continue long-term.
The initiative appears linked to recent scandals, including allegations of large-scale Medicaid and childcare fraud in states like Minnesota. Reports have highlighted potential misuse in programs serving certain communities, with federal officials estimating fraud could reach significant amounts nationwide—some claims suggest up to $100 billion in Medicaid-related issues overall. The Trump administration has already taken steps like freezing payments in certain cases and launching audits.
During the same Fox News appearance, Vance criticized Democrats for their response to parts of Trump’s State of the Union speech. He noted that most Democrats stayed seated and did not applaud when Trump emphasized prioritizing American citizens over undocumented immigrants. Vance called this “cowardice” and a “sad commentary” on the party, suggesting some Democrats were too afraid of backlash from their left-leaning base to stand up even for what he described as common-sense ideas.
A few Democrats did offer polite applause but did not stand, which Vance said showed they were looking to colleagues for cues rather than acting independently.
Overall, the “war on fraud” represents a key priority for the administration, combining investigations into government programs with a strong focus on immigration-related claims of abuse. Vance promised to use all available tools to protect taxpayer money and ensure benefits go to American citizens first.