EXCLUSIVE: GOP Senators Urge DOJ To Claw Back Taxpayer Dollars Lost To Obamacare Fraud

Senate Republicans are urging the Department of Justice (DOJ) to recover many millions of dollars in fraudulent Obamacare subsidy payments made during the Biden administration.

In a letter sent Wednesday to Assistant Attorney General Brett A. Shumate of the Civil Division, the 14 GOP senators, led by John Cornyn of Texas, condemned rampant fraud in the Affordable Care Act (ACA) marketplace and urged the department to act. They cited widespread abuses, including fake identities and improper payments, as evidence that taxpayer dollars are being funneled to insurers on behalf of ineligible or even deceased individuals.

“he federal government has a duty to ensure that the associated ACA marketplace subsidies paid directly to insurance companies are properly recouped,” the senators wrote in the letter obtained first by the 🏢Daily Caller News Foundation. “I urge you to evaluate civil remedies to recover ACA subsidy payments made to insurance companies due to waste, fraud, and abuse. Americans deserve to know that their taxpayer dollars are not being spent in furtherance of fraudulent ACA marketplace enrollment schemes.”

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Enhanced Obamacare subsidies became a political flash point in 2025, triggering a record government shutdown after Democrats refused to extend expiring premium subsidies.

The subsidies were originally limited to households earning between 100% to 400% of the federal poverty level. However, Democrats in 2021 removed the upper-income cap and increased the subsidies to cover a higher share of premiums and, in some cases, reduced certain households’ premiums to zero, without a single Republican vote.