Democrats accuse Trump administration of neglecting financial crimes for immigration crackdown

WASHINGTON – Sen. Elizabeth Warren and a group of Democratic lawmakers are accusing the Trump administration of neglecting white-collar crime by shifting law enforcement resources toward immigration enforcement.

In a letter sent to federal oversight agencies, the lawmakers demanded an investigation into the redistribution of personnel. They allege that more than 25,000 federal employees have been moved away from investigations into fraud, tax evasion, and money laundering since January 2025.

The affected agencies include the FBI, the Internal Revenue Service (IRS), and the Department of Homeland Security (DHS). Lawmakers argue the shift has stalled complex investigations and risks emboldening corporate criminals.

The group claimed that critical investigative units have been "gutted" to bolster operations for U.S. Immigration and Customs Enforcement (ICE). The letter further criticized President Trump’s use of pardons, alleging they have wiped out approximately $1.3 billion in fines and restitution.

Democratic lawmakers warned that these policy changes leave the American public increasingly vulnerable to fraud and corruption.

The recent pushback from Democratic lawmakers transcends mere budgetary concerns, signaling a fundamental realignment of U.S. federal law enforcement priorities under the second Trump administration. Washington is witnessing a decisive pivot away from the protracted prosecution of complex white-collar crimes—which require deep technical expertise and long investigative cycles—toward immigration enforcement, a move designed for immediate political impact.

The scale of this personnel redeployment reveals a deliberate effort to restructure the federal security apparatus. By diverting more than 25,000 agents—including nearly a quarter of the FBI’s workforce and 90% of a critical Department of Homeland Security unit—the administration is effectively hollowing out economic crime divisions within the IRS and FBI. This shift does more than stall active investigations; it threatens to permanently erode institutional knowledge. Financial investigative capacity takes years to cultivate, and once this expertise is lost to attrition or reassignment, it cannot be easily reconstituted.

This strategic shift telegraphs a clear message: corporate malfeasance is no longer a top-tier priority. Such a vacuum risks emboldening financial misconduct and undermining public trust in the equitable application of the law. Politically, Democrats are leveraging these developments to challenge the administration’s "law and order" credentials, framing the policy as a selective enforcement regime that prioritizes high-profile immigration crackdowns while offering a de facto reprieve to corporate elites.

The surge in federal immigration enforcement is having a profound and direct impact on the Vietnamese-American community. Increased ICE activity has fostered a pervasive sense of anxiety, especially for families navigating precarious residency statuses or awaiting processing for F2B and other visa categories. Simultaneously, the erosion of white-collar crime investigations leaves small business owners—the backbone of the nail salon industry and Little Saigon’s phở restaurants—increasingly vulnerable. Without effective federal oversight, these entrepreneurs are left exposed to financial scams, credit card fraud, and predatory lending practices that jeopardize their livelihoods.