The Department of Government Efficiency (DOGE) isn't missing a beat in uncovering waste, fraud, and abuse. DOGE's most recent successes on behalf of the tax payer include bribery schemes at USAID and student loan fraud.
Decades long Bribery Scheme Uncovered in USAID
The United States Agency for International Development (USAID), the federal agency that Democrats howled over when the Department of Government Efficiency (DOGE) began investigating it almost immediately after President Trump was inaugurated, was found to be riddled with fraud. Democrats said that cutting funds to the agency would irreparably harm poor countries abroad.
“Corruption in government programs will not be tolerated. Watson (USAID official) abused his position of trust for personal gain while federal contractors engaged in a pay-to-play scheme,” said Acting Assistant Inspector General for Investigations Sean Bottary of the USAID Office of Inspector General (USAID-OIG).
The US Department of Justice said a contracting officer for USAID official and three corporate executives plead guilty for their roles in a decade-long bribery scheme involving at least 14 prime contracts worth over $550 million in U.S. taxpayer dollars. In addition, two men, both of which contracted with USAID, have agreed to admit criminal liability admitting to engaging in a conspiracy to commit bribery of a public official and securities fraud.
“The defendants sought to enrich themselves at the expense of American taxpayers through bribery and fraud,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Their scheme violated the public trust by corrupting the federal government’s procurement process. Anybody who cares about good and effective government should be concerned about the waste, fraud, and abuse in government agencies, including USAID
Identity Fraud in Department of Education Student Loan Fraud
The US Department of Education (DoE) is launching massive anti-fraud initiatives across the country to eliminate identity theft and fraud in the federal student aid programs. The effort will protect taxpayers and significantly reduce the administrative burden on colleges and universities.
“Federal Student Aid (FSA) data indicates that the rate of fraud through stolen identities, particularly involving technologically advanced fraud rings, has reached a level that imperils the federal student assistance programs under Title IV of the Higher Education Act,” DoE said.
During the COVID-19 pandemic led many institutions to move classes online. At the same time, the Biden Administration removed verification safeguards and diverted resources from fraud prevention toward its illegal loan forgiveness efforts.
Recent Data from the California Community College System indicate that 34% of community college applications from the previous calendar year were fraudulent, resulting in millions lost in federal and state aid. Two weeks ago, the Board of Governors for the state community college system voted to require ID verification for all applicants across the state.
“When rampant fraud is taking aid away from eligible students, disrupting the operations of colleges, and ripping off taxpayers, we have a responsibility to act,” said U.S. Secretary of Education Linda McMahon. “Today’s actions will implement temporary changes to the current verification process to prevent identity theft fraud.”
Similar identity fraud has been experienced in many state systems. Just one example, The College of Southern Nevada wrote off $7.4 million in the Fall 2024 semester because of fraudulent enrollments.