Trump Admin Bars 870,000 Suspected COVID Fraudsters From Obtaining Federal Loans

The Trump administration said Monday it will permanently suspend about 870,000 people suspected of defrauding $39 billion from pandemic-era small business programs from receiving additional federal loans.

Vice President JD Vance made the announcement while in Kansas City at a press conference that touted the success of the administration’s efforts to clamp down on fraud. The effort to clamp down on the pandemic fraud has been named Operation Heartland Surge.

“If you screwed the American taxpayer, the federal government is now going to say, ‘You’re cut off. No more.'” Vance said.

Vance said the administration is sending out letters to those 870,000 suspected of defrauding the federal government programs, specifically the COVID-related Paycheck Protection Program and Economic Injury Disaster Loan that are handled by the Small Business Administration (SBA).

He said there would be an appeals process but didn’t think it would be used, because he said the fraudsters know what they’ve done.

“If you are thinking about defrauding the American taxpayer … don’t do it,” Vance said. “Go and get a job instead.”

SBA Administrator Kelly Loeffler said at the press conference that the fraud was uncovered in 45 states and territories.

Attorney General Todd Blanche said Monday that more than 80 people have been charged so far in relation to more than $245 million in COVID-era loan fraud.

Blanche told of one case in Missouri, where a man claimed to own dozens of businesses and filed for $55 million in loans during the pandemic. The only business that did exist was called Fur Lives Matter. But the employees who worked at Fur Lives Matter had no knowledge of the person who applied for the loan, according to Blanche.

FBI Director Kash Patel said the FBI has created a Most Wanted Fraudster List.

Patel said, in the last three months, they have captured five fraudsters on the list responsible for $2 billion in fraud. The five individuals were apprehended over three continents.

“We will manhunt these fraudsters on every corner of the planet,” Patel said.

Vance was critical of the Biden administration and current congressional and Senate Democrats who he said have “fought us every single step of the way” on going after fraud.

“Did the Biden administration know this stuff was going on? Of course they did. It was an open secret,” Vance said.

The offices of Senate Minority Leader Chuck Schumer (D-N.Y) and House Minority Leader Hakeem Jeffries (D-N.Y.) didn’t immediately respond to an email seeking comment on Vance’s claims.

Schumer did respond in February to Vance’s broader efforts at tackling fraud.

“If JD Vance wants to get to the bottom of fraud and corruption in government, the good news is that all he has to do is walk down the hall into the Oval Office,” Schumer posted on X.