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House Passes Legislation Targeting Fraud in Federally Funded Programs

Legislation cosponsored by Congressman Abraham Hamadeh, the National Fraud Enforcement Division Act of 2026, passed.

WASHINGTON, D.C. – Legislation cosponsored by Congressman Abraham Hamadeh (AZ-08), the National Fraud Enforcement Division Act of 2026, was passed in the U.S. House of Representatives on Wednesday.

The legislation makes permanent the newly established National Fraud Enforcement Division within the Department of Justice (DOJ). The legislation would establish an Assistant Attorney General, appointed by the President and confirmed by the Senate, to lead DOJ efforts to investigate, prosecute, and prevent fraud within federally funded programs.

“I want to thank my colleagues for passing this critical legislation,” stated Congressman Hamadeh. “The criminals, who have created the need for this enforcement effort, have not only stolen taxpayer dollars, but have victimized the most vulnerable in our society by depleting the resources allocated for their needs.”

“Just this week, a criminal, who is a resident in my district, was charged with fraudulently billing Arizona’s federally funded Medicaid agency, AHCCS, of more than $33 million in one year alone,” stated Congressman Hamadeh. “He specifically targeted AHCCCS enrollees who were covered under the American Indian Health Care Program. He exploited vulnerable people to buy expensive property and luxury items. These federal funds are finite, so not only did he target a vulnerable population, but his thievery also serves to weaken the crucial safety net Americans need for education, medical care, retirement, and more.”

Congressman Hamadeh is one of 4 cosponsors on this crucial legislation alongside Reps. Schmidt (R-KS), Hageman (R-WY), and Fischbach (R-MN).

Background:


Acting Attorney General Todd Blanche announced this year the establishment of the National Fraud Enforcement Division within the Department of Justice, tasked with investigating and prosecuting those who steal or fraudulently misuse taxpayer dollars.

The National Fraud Enforcement Division Act of 2026 would establish a permanent National Fraud Enforcement Division within the Department of Justice.

This division will:

o   Streamline federal fraud investigations

o   Lead efforts to investigate, prosecute, and remedy fraud

o   Oversee fraud investigations across multiple agencies

o   Work with other DOJ components to identify common fraud schemes

o   Propose future legislative/regulatory reforms to fix vulnerabilities in the system

o   Advise the Attorney General on fraud investigations