Justice Department widens fraud division's authority after Vance urges probe of Minnesota officials

The Justice Department announced a final rule that broadens the jurisdiction of its National Fraud Enforcement Division, allowing it to prosecute any federal offenses uncovered during fraud-focused inquiries. Assistant Attorney General Colin McDonald, who leads the division, now has authority over criminal fraud, tax violations, customs and tariff issues, healthcare fraud, and cases involving federal payments. Additionally, the rule grants the division power to bring charges for any crimes identified during its investigations, regardless of whether they fit its primary mandate.

This policy shift follows Vice President JD Vance's June appeal for a probe into Governor Tim Walz and Attorney General Keith Ellison concerning alleged fraud in federally funded social-service programs, a claim stemming from a Republican-led House committee report. Both Minnesota Democrats have defended their records, and Ellison described the referral as politically driven. While the rule does not mandate an investigation, it provides flexibility for the division to act if prosecutors uncover further wrongdoing, and it takes effect on Aug. 24.