Key Takeaways
- •Colin McDonald (Associate Deputy Attorney General, U.S. Department of Justice) defended his nomination to lead the new National Fraud Enforcement Division, pledging a "relentless" crackdown on government fraud.
- •McDonald stated the division would prioritize rooting out fraud in taxpayer-funded programs like Medicaid and SNAP while coordinating with Inspectors General to ensure efficient investigations.
- •Sen. Adam B. Schiff (D-CA) repeatedly pressed McDonald on his involvement with the "Weaponization Working Group," but McDonald declined to answer yes-or-no questions regarding potential ethics violations.
- •Republicans characterized the division as a vital tool against "organized theft," while Democrats expressed concern that the administration was politicizing justice by targeting perceived enemies.
- •The committee set a March 4 deadline for written questions, with Sen. Chuck Grassley (R-IA) noting the nomination will not proceed until McDonald provides expeditious responses.
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Hearing Analysis
Overview
The Senate Judiciary Committee held a hearing on February 25, 2026, to consider the nomination of Colin McDonald, currently an Associate Deputy Attorney General, to serve as the Assistant Attorney General for the newly established National Fraud Enforcement Division (NFED) within the Department of Justice (DOJ). The hearing focused on the Trump administration’s structural reorganization of the DOJ to centralize fraud prosecution and the broader "War on Fraud" initiative. Chairman Chuck Grassley (R-IA) opened the session by emphasizing the need to protect federal programs and senior citizens, citing AARP estimates that elderly Americans lose $28 billion annually to fraud.
Key Testimony
Colin McDonald, a career federal prosecutor, testified that the NFED is necessary to address the massive scale of fraud against the government. He cited a Government Accountability Office (GAO) report estimating that fraud against taxpayer-funded programs ranges from $233 billion to $521 billion annually. McDonald argued that while the Civil and Criminal Divisions have had record recovery years, the problem has become "industrial" and requires a dedicated, relentless division. He committed to using data analytics to identify fraud in programs managed by the Department of Health and Human Services (HHS) and the United States Department of Agriculture (USDA), specifically mentioning Medicaid and the Supplemental Nutrition Assistance Program (SNAP).
The hearing was characterized by sharp partisan disagreement regarding the DOJ's independence and the role of the "Weaponization Working Group." Sen. Richard J. Durbin (D-IL) and Sen. Adam B. Schiff (D-CA) questioned McDonald about his involvement in this group, which they characterized as a tool for political retribution. McDonald defended the group’s work as a necessary review of "misuses of government power" during the Biden administration, specifically citing the Office of the Special Counsel’s handling of discovery and trial timelines in cases against President Trump. A notable exchange occurred when Sen. Schiff repeatedly asked if members of the working group were required to follow the Justice Department Manual or if they had violated grand jury secrecy; McDonald declined to provide a direct "yes or no" answer, referring instead to his prior testimony.
Overview
Republicans focused on specific instances of large-scale fraud to justify the new division. Sen. Josh Hawley (R-MO) and Sen. Eric Schmitt (R-MO) highlighted the "Somali daycare fraud" in Minnesota involving the nonprofit Feeding Our Future, which allegedly defrauded the government of $250 million. Sen. Hawley accused Minnesota officials of enabling the fraud and cited a LexisNexis estimate that total federal fraud could reach $1 trillion annually. Sen. John Cornyn (R-TX) raised concerns about $21 billion in unreconciled subsidies under the Affordable Care Act (ACA), alleging that insurance companies received windfalls from fraudulent enrollments. Sen. Marsha Blackburn (R-TN) praised McDonald’s previous work with the Memphis Safe Task Force, which involved coordination between the United States Marshals Service, the National Guard, the Tennessee Bureau of Investigation (TBI), and the Tennessee Highway Patrol (THP) to reduce violent crime.
Policy Proposals
Policy discussions also touched on the impact of presidential pardons. Sen. Christopher A. Coons (D-DE) questioned how McDonald could maintain enforcement integrity when President Trump has pardoned individuals like Trevor Milton of Nikola Corporation and Lawrence Duran of American Therapeutic Corporation, both of whom were convicted of massive fraud and ordered to pay hundreds of millions in restitution. McDonald declined to comment on specific pardons but insisted he would equip his team to go after fraud more effectively than ever before. Additionally, Sen. Durbin questioned the decision to disband the National Cryptocurrency Enforcement Team (NCET), while McDonald countered that cryptocurrency expertise had been integrated into other DOJ components.
Key Testimony
The hearing concluded with a tense exchange between Sen. Peter Welch (D-VT) and McDonald over the 2020 election. When asked who won, McDonald stated that Joe Biden was "certified" and "served four years," but he refused to explicitly state that Biden won the election, leading Sen. Welch to express concern over the nominee's impartiality. Chairman Grassley set a deadline of March 4, 2026, for written questions for the record, noting that the nomination would not proceed until McDonald provided expeditious responses.
Transcript
To love and serve God, to live with integrity, to pursue excellence, to be grateful and content, and to never ever give less than 100 percent in anything. I am honored that my mom and dad also are here in the room with me today and am thankful for their lifelong love and support. I am also blessed to have a large family supporting from home today, including my father and mother-in-law, my grandmothers, my siblings and their spouses, my wife's sisters and their husbands, and upgraded just two nights ago, my 46 nieces and nephews. I love you all. As for me, I am a career federal prosecutor and a career public servant. I got my start as a clerk for United States District Judge Michael Anello, who graciously welcomed me into his chambers and generously taught me so much about the practice of law. Thereafter, I joined my hometown U.S. Attorney's Office in San Diego as an Assistant United States Attorney. I grew up as a lawyer in that office, mentored by many selfless public servants who gave their talents to their country and their community. Representing the United States as an AUSA has been the honor of a lifetime. The mission of an AUSA is the purest of them all. It's not to win at all costs. It's not to get convictions. It's to do justice for the United States. Meeting that high mark of justice demands equal measures of courage and caution, conviction and compassion, persistence and prudence. It demands a relentless pursuit of the truth, a willingness to follow the facts wherever they lead without fear or favor. As an AUSA and now as an Associate Deputy Attorney General, I have given every last ounce of energy every day to meet that high mark of justice. And I have the distinct privilege of working with the men and women of the Department of Justice who are committed to achieving that same high ideal. Above all other days, I've known that I've reached the high mark of justice when a victim of crime looked me in the eye and thanked me for listening, for caring, and for fighting for truth and justice on their behalf. If confirmed as the AAG for the National Fraud Enforcement Division, I will continue each and every day to give my all for the American people and strive for truth and justice. I welcome your questions.
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