
Trump administration uncovers $1.2B in suspected COVID contract fraud tied to Biden-era spending
(Source: FOX news): The General Services Administration says it has identified approximately $1.22 billion in suspected fraud involving five COVID-era contracts administered through the Department of Health and Human Services.
According to the GSA, some emergency contracting continued after the federal COVID-19 emergency ended in 2023. Officials also said millions of dollars in vaccine-related contracts were awarded after the emergency period had concluded.
GSA Administrator Edward C. Forst said the agency’s review was conducted as part of the Trump administration’s broader effort to identify improper government spending. The agency has referred suspected fraud for further review and says it intends to pursue the recovery of improperly distributed funds.
The GSA estimates that roughly 93% of the funding associated with the contracts had not yet been paid to vendors when the review took place. About 6.78% had already been spent, and payments to contractors have reportedly been suspended.
White House Task Force to Eliminate Fraud Executive Director Scott Brady said the review also prevented approximately $41 million in additional payments involving the contracts. He said emergency contracting authority was intended for the pandemic emergency and was not meant to continue indefinitely.
The announcement follows other fraud investigations announced by the administration. The GSA previously reported identifying more than $13 billion in suspected contractor fraud in August, while the administration has reported substantially larger totals across various federal programs since President Trump took office.
HHS has reported billions of dollars in suspected fraud involving federal health programs. The administration has also highlighted cases involving individuals accused of exploiting federal government programs from outside the United States.
One case involves Onur Simsek, a Turkish national whom federal authorities accuse of participating in a defense procurement fraud scheme. Prosecutors allege that components manufactured in Turkey were falsely certified as meeting required testing and qualification standards. The FBI has offered a $150,000 reward for information leading to his arrest.
The administration’s broader fraud initiative has also focused on alleged abuse of federal benefit programs. Vice President JD Vance has said authorities have identified recurring patterns in some investigations involving particular communities, while emphasizing that individual cases involve specific allegations that must be investigated separately.
The GSA says its review of the COVID-era contracts remains part of the administration’s continuing effort to identify improper payments and recover taxpayer funds.