In his State of the Union address this week, President Donald Trump announced that he has tapped Vice President J.D. Vance to lead a new “war on fraud” targeting misspent taxpayer money in programs administered at the state level.
“This is the kind of corruption that shreds the fabric of a nation,” President Trump said.
We agree. State Policy Network and its affiliates have long been on the front lines of this battle.
In all four states the president cited in his speech, Network affiliates have worked tirelessly to expose waste, fraud and abuse in public spending.
- In Minnesota, Center of the American Experiment helped push a major welfare-fraud scandal into the light through sustained investigation and documentation.
- The California Policy Center and Pacific Research Institute have elevated how weak controls invite large-scale fraud, and how the costs land on employers and taxpayers.
- The Maine Policy Institute has kept a steady spotlight on oversight failures, insisting state agencies answer basic questions about controls, compliance, and accountability.
- In Massachusetts, Pioneer Institute has underscored how “leakage” in large programs becomes a fiscal problem fast, and why serious oversight is central to stewardship.
Of course, this work is not limited to Minnesota, California, Maine, or Massachusetts. The Foundation for Government Accountability has consistently tracked fraud with a national perspective, and in state after state, SPN affiliates are pressing for reforms that protect taxpayers and the people these programs are meant to serve. Some do this through investigative work that brings key facts into the open. Others do it through policy research that shows what failed and how to fix it.
Many of the dollars involved originate in Washington, but states administer the programs this money flows through. That is why the most durable fixes come from state policy and state oversight. Affiliates focus on the mechanics that determine whether a program can be exploited or well run. They identify vulnerabilities, quantify the costs, and advance reforms that strengthen oversight and prevent repeat losses.
Advancing the Battle
At the same time, SPN’s Center for Practical Federalism is working on a major project to help state leaders reform government programs to stop fraud and waste and prevent it going forward.
As the war on fraud ramps up, CPF can help state leaders move beyond general commitments and into policy and operational changes that can withstand scrutiny, strengthen stewardship, and protect the people public programs are meant to serve.
CPF is building practical tools for state leaders who want to cut fraud and waste by strengthening oversight in large, federally funded programs. One focus is federal “guidance,” such as memos, FAQs, and “Dear Colleague” letters. Guidance is not law, but states often treat it like it is, and the compliance costs land in state budgets.
CPF is helping states make that impact visible. Staff work with leaders to ask state agencies a simple set of questions. What federal guidance are you using to run this program? When did it arrive? What changes did it require? What is it costing taxpayers in staff time, contractors, and new systems?
With those answers in hand, CPF helps leaders focus oversight on the biggest cost drivers and require transparency so legislators and the public can see what is shaping policy and spending decisions in their state.
The Takeaway
Our affiliates have been doing the difficult work of exposing fraud and waste long before it became a centerpiece of national politics. Now Washington is paying attention—and state leaders have an opportunity to lead with reforms that last.
If you want to join the war on fraud with serious, workable state solutions, contact SPN’s Center for Practical Federalism.
Media interested in learning more about the state-led war on fraud can reach SPN at walsh@spn.org.
Policymakers interested in learning how to get involved with the Center for Practical Federalism can contact sjohnson@spn.org.
