Vice-President J.D. Vance was in Maine today to
tout what the Trump administration claims is its push to combat fraud in public
services. Vance blamed Democrats for fraud in Medicaid programs and vowed that
the Trump administration would stop such fraud by refusing to distribute funds
to states that were not cooperating with the federal government’s anti-fraud
efforts. He announced yesterday the administration intends to
withhold $1.3 billion in Medicaid payments from California.
This alleged push against fraud is part of an old
playbook the Republicans have used since at least 2000 in which they accuse the
Democrats of their own weak points and misdeeds.
This play was often associated with Republican strategist
Karl Rove, but in 2024, Caroline Wazer of Snopes noted that it is most usually
associated with Nazi propaganda in the 1930s. Accusing opponents of what you,
yourself, are doing, muddies the waters and makes it hard for real accusations
against you for the same thing to stick.
Experts say fraud in federal programs is a real problem
but that it is carried out primarily by transnational criminal organizations,
not by individual recipients. Republican rhetoric claims a high rate of
“improper payments,” but the Centers for Medicare and Medicaid Services itself
stresses that “improper payment measurement is not a measure of fraud.”
Rather, that term identifies payments where the paperwork
provided by the state or provider was incomplete. Those numbers have been high
recently because the government allowed states greater flexibility during the
Covid-19 public health emergency.
According to the nonpartisan Maine Center for Economic
Policy, MaineCare is overseen by both state and federal agencies, and the most
recent federal review found that only about 0.1% of total program spending was
in incorrect payments.
Indeed, last month, Reed Shaw of Just Security noted
that the administration’s claim to be rooting out fraud appears simply to be a
new way to punish perceived political enemies that might have a better chance
of getting through the courts than the administration’s previous attempts did.
Accusing Democrats of fraud will also accomplish the
political goal of muddying the waters to make it harder for voters to see that
the Trump administration is the most corrupt U.S. administration in history.
And concern about voters’ perceptions of corruption must be uppermost in the
minds of administration advisors right now, since new Hungarian prime minister
Péter Magyar’s landslide victory over Trump ally Viktor Orbán was driven in
large part by voters’ fury at Orbán’s corruption.
Muddying the waters for voters is the best the Trump
administration can hope for because, for all the administration’s claims to be
fighting fraud, Trump’s corruption is mind-boggling.
He has fired or demoted twenty inspectors general—the
people key to oversight—and in 2024 alone the people he has since fired or
sidelined identified more than $50 billion in waste and abuse. Matthew Purdy
and Luke Broadwater of the New York Times noted in March that
in both terms as of March 2026, Trump has also pardoned or commuted the
sentences of more than 70 donors or allies who were convicted of fraud. One,
Philip Esformes, was convicted of stealing $1.3 billion from Medicare.
Steven Greenhouse of The Guardian reminded
readers today that in January, David D. Kirkpatrick of the New
Yorker reported that the Trumps have pocketed about $4 billion,
primarily through cryptocurrency enterprises.
Greenhouse notes that Trump’s sons Eric and Don Jr. have
invested in a drone manufacturer that is trying to sell weapons to Gulf
countries currently at risk from the war their father started in Iran, and that
the Pentagon recently awarded a $24 million contract to a robotics startup for
which Eric is the “chief strategy advisor.”
Even as Trump’s son-in-law Jared Kushner is acting as a
chief negotiator for the U.S. in the Middle East, he has been trying to raise
$5 billion from investors there for his investment firm. Saudi Arabia’s Public
Investment Fund, a sovereign wealth fund overseen by Saudi Crown prince
Mohammed bin Salman (MBS), has already invested $2 billion with Kushner.
And then there are Trump’s vanity projects to remake the
national capital. As Greenhouse notes, corporations and billionaires have
dropped millions of dollars in donations for Trump’s ballroom where the East
Wing used to be and his proposed presidential library in Miami.
In December 2025, Karen Yourish, Kenneth P. Vogel, and Charlie Smart of
the New York Times estimated that Trump had raked in more than
$2 billion for his projects or causes, more than half a billion of it from 346
people who each gave at least $250,000. Some of those people have received
presidential pardons, others have been given jobs, and all have received access
to the president.
On May 11, Jonathan Allen, Peter Nicholas, Matt
Dixon, Henry J. Gomez, and Allan Smith of NBC News reported that Trump is using
the planned Ultimate Fighting Championship (UFC) event to be held on his
birthday on the White House lawn as a new way for donors to funnel money to
him. Although the UFC is paying for the event—and expects to lose as much as
$30 million on it—and although tickets are technically free, Trump is picking
who gets most of the tickets.
Sponsorship packages that include ringside seats have
been selling for $1 million or more. Neither the White House nor the UFC would
comment on where the money is going. A Republican lobbyist told the NBC News
journalists: “It’s basically been added to the list of approved entities to
give undisclosed money to and get credit with Trump. They are raising a sh*t
ton of money and have used it as another unofficial vehicle for corporate
donors to give and gain favor with Trump.”
And now Trump is in China on a state visit on which he took along seventeen CEOs of companies—many of which do business in China—including billionaires Elon Musk and Tim Cook of Apple.
Together, the
members of the delegation are worth more than a trillion dollars. Trump also
took his son Eric, who runs the family business. As economist Paul Krugman
said today, “He might as well have been walking around Beijing with a sign
that says—in block capitals, of course, this is Trump—BRIBE ME.”
On Tuesday a group of Miami residents sued
Trump, his library fund, Florida governor Ron DeSantis, Miami Dade College and
its trustees, and Florida officials to stop the construction of Trump’s
presidential library, charging that state officials violated the Constitution’s
emoluments clause when they transferred almost three acres of prime waterfront
land, worth between $67 million and $300 million, to Trump’s library foundation
for $10. Trump has already said he wants to build a hotel on the site rather than
a traditional library.
Andrew Duehren and Alan Feuer of the New York
Times reported Tuesday that the Department of Justice was
working with Trump to settle his $10 billion lawsuit against the Internal
Revenue Service (IRS) after a contractor during Trump’s first term leaked tax
returns from thousands of wealthy individuals to the media. The Department of
Justice and Trump were eager to settle before the judge in the case could rule
on whether the case was valid, a decision that could easily go against Trump
since he was both the plaintiff and, as the person overseeing the IRS, the
defendant in the lawsuit.
This evening, Katherine Faulders, Peter Charalambous, and
Alexander Mallin of ABC News reported that Trump is in talks to drop the
lawsuit in exchange for the government’s establishing a $1.7 billion fund to
compensate those of Trump’s allies who claim they were harmed by the Biden
administration’s alleged “weaponization” of the Department of Justice.
Those eligible for payments from this taxpayer-funded
account would include nearly 1,600 people convicted of committing crimes
related to the January 6, 2021, attack on the U.S. Capitol, people Trump
pardoned or commuted the sentences of shortly after he took office in January
2025. While Trump himself will probably be barred from direct payments,
entities associated with him will not be.
A spokesperson for Trump’s legal team told the ABC News
reporters: “President Trump continues to hold those who wrong America and
Americans accountable.”
—Heather Cox Richardson






