Vice President J.D. Vance was in Maine in May 2026 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 President Donald 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.
