Moore Blasts Federal Programs for Incentivizing Fraud, Urges Reforms to JD Vance Task Force

Stephen Moore, co-founder of Unleash Prosperity, criticized the design of major federal programs such as unemployment insurance, Medicaid, and daycare subsidies, arguing they create perverse incentives for fraud at the state level.

In the discussion, Moore stated that Democratic governors in certain states encourage fraud because it brings more federal money into their jurisdictions. “A lot of these Democratic governors say this just brings more money to our state. They are encouraging the fraud,” he said.

He highlighted the need for structural changes, praising Vice President JD Vance as well-suited to lead an anti-fraud task force. Moore proposed reversing current incentives by rewarding states with strong records of rooting out fraud and financially penalizing those with high fraud rates, specifically naming California, New York, Illinois, and New Jersey.

Moore expressed support for broader government efficiency efforts, referencing the Department of Government Efficiency (DOGE) initiative previously led by Elon Musk. While acknowledging that DOGE identified hundreds of billions of dollars in fraud, waste, and abuse, he voiced hope that follow-through would occur to fix underlying programs rather than accepting the problems as “the cost of doing business.”

He pointed to redundancies across federal initiatives, noting examples such as 38 different job training programs and 24 different special education programs. “The left hand of the government does not know what the right hand of the government is doing,” Moore said, estimating that eliminating redundancy and waste could cut the cost of government in Washington by about 20 percent.

The conversation also touched on energy policy amid high gas prices. Moore noted increased shipments of oil tankers to U.S. Gulf Coast ports due to rising American production. He advocated for North America — including the United States, Canada, and Mexico — to become the world’s leading energy powerhouse, leveraging the continent’s abundant oil resources for the next century.

Moore endorsed the “drill, baby, drill” approach and suggested the Trump administration press China, the world’s largest importer of Middle East oil, to purchase more from North America instead. He recommended a firm stance toward Chinese President Xi Jinping, describing China as an economic adversary rather than a friend or ally, and urging accountability on issues like keeping key shipping channels open.

Moore emphasized that while the energy transition is gradual and consumers face high prices in the interim, expanded domestic and continental production positions the region favorably amid global conflicts.