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Trump signs executive order that could rattle California and New York

Tue, March 17, 2026 - 04:00
2 min
In the crosshairs: billion-dollar graft and the "blue" states
Trump signs executive order that could rattle California and New York Donald Trump, President of the US (photo: Getty Images)

US President Donald Trump has signed a decree establishing a special task force to combat fraud in federal benefit programs, reports Bloomberg.

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The new structure will be headed by Vice President JD Vance, and its task will be to strengthen control over the use of public funds across the country.

While signing the document at the White House, Trump stated that fighting financial fraud is not a matter of partisanship, but added that a significant portion of such cases allegedly occur in states run by Democrats. According to him, the administration will audit abuses regardless of where they occur - in "blue" or "red" states.

Vice President Vance explained that the new task force will apply a whole-of-government approach to combating fraud. He mentioned a high-profile case in the state of Minnesota, where investigators are probing a scheme involving the embezzlement of nearly $300 million from pandemic-related aid programs. According to federal authorities, dozens of people have already been convicted in the case.

The task force's work will also involve the heads of federal agencies. The Vice Chair will be Federal Trade Commission Chairman Andrew Ferguson, and influential White House aide Stephen Miller will serve as an advisor.

The initiative is part of the Trump administration's broader campaign against financial abuses in government programs. Previously, the president declared a war on fraud and ordered a review of a number of federal payments, including those in the Medicaid health insurance sector.

At the same time, critics believe that the new measures could become a tool for political pressure on Democrat-led states, particularly California and New York. The White House denies these accusations and insists that the main goal of the initiative is to ensure that federal money reaches legitimate recipients, not fraudsters.

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