Watchdog Coalition Uncovers $28 Billion in Waste, Backs Trump’s Nationwide “War on Fraud”
WASHINGTON, D.C. — As President Donald Trump intensifies his administration’s crackdown on government waste, a coalition of conservative state financial officers says it has already uncovered and stopped more than $28 billion in fraud, waste, and abuse in 2025 alone, and is pledging to partner with the White House to expand the effort nationwide.
In a formal letter to Vice President JD Vance, who has been appointed to lead the administration’s “War on Fraud,” the State Financial Officers Foundation (SFOF) said its 40 state treasurers, auditors, and comptrollers across 28 states stand ready to coordinate with federal authorities.
The coalition collectively oversees more than $3 trillion in state funds.
The Report: $28 Billion Flagged in 2025
The group’s inaugural 2025 Oversight Report outlines what it calls some of the most significant fraud and waste discoveries at the state level.
Among the findings:
- Florida identified nearly $2 billion in excessive spending.
- Kentucky uncovered more than $836 million in improper Medicaid payments.
- North Carolina flagged over $1 billion in lapsed salaries tied to long-term vacancies.
- Utah reported more than $518 million in fraud and abuse across agencies and nonprofits.
SFOF CEO OJ Oleka said the findings demonstrate the power of independent fiscal oversight.
Partnering With the White House
In the letter to Vance, Oleka praised President Trump’s focus on rooting out what he described as corruption that has “shredded the fabric of a nation.”
-“Our members are allies already on the battlefield,” Oleka wrote.
-“The American people deserve nothing less.”
The coalition argues that state financial officers, many elected independently of governors and legislatures, are uniquely positioned to expose mismanagement.
Medicaid Under the Microscope
Medicaid oversight has become a particular focus of the Trump administration following high-profile fraud cases in Minnesota.
Vice President Vance recently announced a temporary halt on certain Medicaid funds flowing to Minnesota pending further review, saying states must “take their obligations seriously to be good stewards of the American people’s tax money.”
The SFOF report highlights Medicaid vulnerabilities as a major source of improper payments nationwide.
A Coordinated Federal-State Effort
The coalition says a coordinated approach between federal and state watchdogs could significantly expand fraud detection efforts.
- With $3 trillion in oversight experience at the state level
- With billions already flagged
- With administration backing at the federal level
Officials believe the effort could reshape how taxpayer dollars are safeguarded across the country.
“By working together,” Oleka wrote, “we can protect our nation’s treasure to the fullest extent against every foe and every plot to endanger it.”
What Comes Next
The White House has not yet detailed specific federal-state coordination mechanisms, but officials indicate additional anti-fraud measures are forthcoming.
- Republicans are signaling support for expanded oversight tools.
- Democrats have expressed concern about funding pauses.
- The administration says preventing taxpayer abuse remains a top priority.
The initiative marks one of the administration’s most aggressive fiscal oversight pushes to date.