DOJ Stands Up National Fraud Division and IRS Targets Fiscal Sponsorship in Same Month

The DOJ launched the National Fraud Enforcement Division on April 7 and Treasury announced revisions to IRS Form 990 on April 23, building the federal infrastructure to surface what on-chain models already publish by default.

DOJ Stands Up National Fraud Division and IRS Targets Fiscal Sponsorship in Same Month The DOJ launched the National Fraud Enforcement Division on April 7 and Treasury announced revisions to IRS Form 990 on April 23, building the federal infrastructure to surface what on-chain models already publish by default. Aaron Rafferty April 30, 2026 Key Takeaways: Acting Attorney General Todd Blanche established the National Fraud Enforcement Division on April 7, 2026, consolidating DOJ's Tax Section, Health Care Fraud Unit, and Market, Government, and Consumer Fraud Unit under a new litigating division with $300 million in dedicated prosecutor funding. Treasury announced revisions to IRS Form 990 on April 23, requiring more detailed disclosure of fiscal sponsorship arrangements, government grants, and government contracts. Both moves target the structural opacity of nonprofit funding flows, building federal infrastructure to surface what on-chain allocation models publish by default. Acting Attorney General Todd Blanche issued a memorandum on April 7, 2026 establishing the National Fraud Enforcement Division (NFED) within the Department of Justice. The Division consolidates the Tax Section, Health Care Fraud Unit, and Market, Government, and Consumer Fraud Unit under one Assistant Attorney General, Colin McDonald. By April 24, the NFED had secured $300 million in funding for state and local prosecutors to be detailed into the new structure as Special Attorneys. The structural piece of the memo that matters most is the National Fraud Detection Center, a permanent multi-agency analytics team that uses billing and financial data to generate investigative leads before whistleblower complaints arrive. Each U.S. Attorney's Office must designate an experienced prosecutor to be