Will eliminating fraud clear the US national deficit as Trump claims?

In January 2026, President Trump claimed that eliminating fraud would balance the US budget. This statement followed investigations into alleged public service fraud, particularly involving Somalis in Minnesota. While federal prosecutors have pursued fraud cases involving hundreds of millions of dollars in Minnesota, and estimates of nationwide fraud reach as high as $521 billion annually, these sums are insufficient to eliminate the $1.775 trillion deficit from fiscal year 2025. A 2024 Government Accountability Office report estimated significant federal losses to fraud during the Biden administration. Experts emphasize that while combating fraud is important, fiscal restraint is necessary to achieve a balanced budget.

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