The Justice Department Is Pulling Back on Prosecuting Corporate Crime

Justice Department Shifts Stance on Corporate and Environmental Prosecutions

The U.S. Department of Justice is signaling a significant retrenchment in its approach to white-collar and environmental crime enforcement during President Donald Trump’s second administration. Federal prosecutors have been directed to halt criminal cases involving “diesel delete” emissions tampering, while a broader decline in white-collar prosecutions has led to a record-low influx of funds into the federal Crime Victims Fund. The shift in enforcement strategy is evidenced by a January 2026 directive from the DOJ’s Environment and Natural Resources Division, which stated the department is exercising enforcement discretion to stop pursuing criminal charges under the Clean Air Act for tampering with onboard diagnostic devices in motor vehicles. According to a memo reviewed by CBS News, Deputy Attorney General Todd Blanche ordered prosecutors to drop all pending criminal cases and cease new prosecutions related to this software-based tampering.

Impact on Victim Services and Funding

The federal Crime Victims Fund—established by Congress in 1984 and funded largely by fines and penalties from corporate and white-collar criminal convictions—has reached its lowest deposit levels since President Trump’s first term. Because these deposits are the primary source of grants for state-level victim services, organizations are now scaling back operations. In Pennsylvania, the state’s Office of Victims’ Services warned local providers to prepare for a 7.5% cut to grants this fall. Kathy Buckley, director of the office, noted that providers have already begun reducing staff, cutting emergency housing and legal services, and leaving key roles vacant to manage the shortfall.

Domestic violence victims who call in the middle of the night, who have been strangled, they try to get them to a shelter so they can feel safe, Buckley said, describing the critical nature of the services facing these cuts.

Evolution of Enforcement Models

While the current administration is pulling back on specific criminal prosecutions, the landscape of corporate enforcement has been shifting for years. According to a law review article by Duke Law Professor Rachel Brewster, the U.S. has transitioned from a model of unilateral enforcement of the Foreign Corrupt Practices Act (FCPA) to a system of global settlements. These settlements involve coordinated, parallel, or sequential prosecutions by multiple nations. Rather than joint legal actions, countries share information and coordinate the resolution of cases against multinational corporations.

Context and Limitations of Policy Changes

Despite the DOJ’s decision to end criminal prosecutions for diesel emissions tampering, officials emphasize that the practice remains illegal. The department maintains it will continue to pursue civil enforcement in partnership with the Environmental Protection Agency. Industry experts, including Allen Schaeffer of the Engine Technology Forum, warn that the end of federal criminal oversight does not remove the risks for heavy-duty trucking fleets. The administration’s broader approach to legal accountability remains a point of focus. In November, White House spokesperson Karoline Leavitt stated that the administration conducts a very thorough review process regarding pardons, aiming to address cases the president believes were unfairly prosecuted under the Biden administration. Since taking office, the administration has also replaced leadership within the Justice Department with attorneys aligned with the president’s priorities.