Schmitt Introduced Legislation to Solidify Fraud Division
Senator Eric Schmitt has proposed a bill to make the Department of Justice's National Fraud Enforcement Division permanent.
Updated on Sept. 23, 2026 in Financial Crime
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Should political parties work together on federal anti-fraud legislation regardless of which president is in office?
Senator Eric Schmitt officially introduced Senate legislation this week aiming to permanently establish the National Fraud Enforcement Division within the Department of Justice. The move follows a recent bipartisan vote in the House of Representatives to secure the future of the agency.
Why it matters
The proposed legislation seeks to ensure that federal fraud enforcement remains a consistent priority for the Department of Justice regardless of changes in presidential administration. Proponents argue this permanence is essential for protecting federally funded programs and private citizens from fraud.
The National Fraud Enforcement Division was established by President Trump in January 2026 to target fraud against the federal government. The division is currently chaired by the Vice President and led by Assistant Attorney General Colin McDonald.
The players
Eric Schmitt
He is a U.S. Senator who has been active in promoting anti-fraud measures within the legislative branch.
Donald Trump
He is the current President of the United States who authorized the formation of the National Fraud Enforcement Division.
Colin McDonald
He serves as the Assistant Attorney General and currently runs the operations of the National Fraud Enforcement Division.
The details
Senator Schmitt, who previously launched a Senate-only Republican Anti-Fraud Taskforce in June 2026, is leading the push to codify the division's status into law. The House of Representatives successfully passed a parallel bipartisan bill to protect the division last week.
Timeline
The anti-fraud division was originally created in January 2026.
Senator Schmitt launched the Senate Anti-Fraud Taskforce in June 2026.
The House passed the permanency bill last week in September 2026.
Senator Schmitt officially introduced the new Senate legislation on September 22, 2026.
Legal Context
This legislation marks a shift toward codifying internal executive agencies into permanent law to insulate them from future administration turnover. It follows a broader trend of Congress asserting its role in stabilizing federal investigative units created by presidential order.
The permanent establishment of this division could lead to more consistent federal oversight and investigation of programs that impact taxpayer dollars and personal funds. Residents and businesses may see continued or expanded federal scrutiny regarding fraud allegations as the division solidifies its role.
The takeaway
If the legislation passes, it would provide a permanent mandate for the division to investigate fraud across federal programs regardless of who occupies the White House. This change highlights the ongoing legislative effort to formalize executive-branch anti-fraud agencies into the permanent federal bureaucracy.
Further reading
For more information on current initiatives, visit the Financial Crime section.
Live Poll
Should political parties work together on federal anti-fraud legislation regardless of which president is in office?
