Trump Calls for Tougher Penalties for Medicare, Medicaid and Social Security Fraud

President Donald Trump has called on Congress to introduce tougher penalties for people convicted of defrauding Medicare, Medicaid and Social Security, proposing mandatory prison sentences and financial consequences for public officials who knowingly fail to stop fraud.

In a recorded address released by the White House on October 3, Trump said lawmakers should strengthen protections for federal benefit programs that support healthcare, vulnerable households and retirement income. His remarks outlined a legislative proposal rather than announcing a law already in force.

Trump said the proposed approach would prevent offenders covered by the legislation from receiving probation and would increase prison terms according to the amount stolen. He also called for doubled sentences for repeat offenders, although the short address did not explain precisely how that provision would operate.

“Under our proposal, probation is no longer an option for the fraudsters,” Trump said.

The president also proposed personal financial liability for state or local politicians who know about fraud, have the ability to intervene and deliberately fail to act. He presented these measures as a way to discourage both the theft of public money and failures of official oversight.

White House sends proposal to Congress

The administration subsequently submitted proposed legislative language to congressional leaders, according to an October 6 report by Semafor, which said it had reviewed a copy.

The report said the document was sent to House and Senate leadership on Sunday night. It would establish minimum prison terms tied to financial losses, ranging from at least one year for cases involving less than $40,000 to at least 20 years for cases involving $100 million or more.

Semafor also reported that the proposal would prohibit probation or suspended sentences under the relevant provisions and could impose financial liability on state officials or employees who knowingly disregard fraud. Congress would need to consider and pass legislation before these proposed penalties could take effect.