Disgraced Dem cut off from doing business with government after alleged ‘outright fraud’ uncovered

After resigning in the face of a House ethics probe, disgraced former Congresswoman Sheila Cherfilus-McCormick has been cut off from doing business with the federal government or receiving federal grants, aid or contracts.

This comes as Cherfilus-McCormick, a Florida Democrat, is charged with stealing $5 million in COVID-19 FEMA funds and making illegal campaign contributions. Cherfilus-McCormick resigned from Congress in late April after Republicans vowed to force a vote to expel her from the chamber. Though she resigned, Cherfilus-McCormick has denied any wrongdoing and is still running to regain her congressional seat this November.

Now, the Department of Homeland Security, which oversees FEMA, announced that Cherfilus-McCormick has been suspended, a federal designation that temporarily bars her from receiving contracts, grants or other federal funds. Her brother, Edwin Cherfilus, along with other associates and affiliated entities named in the federal indictment, has also been suspended by DHS.

“Former Congresswoman Sheila Cherfilus-McCormick abused Americans’ trust in the most egregious way possible,” DHS General Counsel James Percival said in a statement. “She manipulated the COVID-19 crisis to funnel over $5 million of FEMA relief funds to her and her family members.”

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“This is outright fraud,” Percival added, continuing, “That’s exactly what a federal grand jury and the U.S. House of Representatives found.”

Percival said he is “proud that my office is taking the first step to ensure she is held accountable and American taxpayers’ money is protected from further misuse.”

Cherfilus-McCormick was indicted by a Miami grand jury in November 2025 for allegedly stealing $5 million from FEMA. The decision to resign from office came just before the House Ethics Committee was scheduled to recommend she be punished for misusing disaster relief funding that she allegedly funneled through several companies into her campaign coffers.

The committee found that she had committed 18 campaign finance violations, five counts of false financial disclosures, three counts of misusing official funds and one count of lack of candor.

Cherfilus-McCormick maintained her innocence, asserting that “This was not a fair process.”

She said in a press release that the House Ethics Committee “refused my new attorney’s reasonable request for time to prepare my defense.” She wrote, “I simply cannot stand by and allow my due process rights to be trampled on, and my good name to be tarnished.”

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“Rather than play these political games, I choose to step away so that I can devote my time to fighting for my neighbors in Florida’s 20th district. I hereby resign from the 119th Congress, effective immediately,” she wrote.

DHS said that Cherfilus-McCormick’s suspension aligns with President Donald Trump’s executive order establishing the Task Force to Eliminate Fraud. The Trump Task Force to Eliminate Fraud, which is led by “fraud czar” Vice President JD Vance, has been directed by the president to combat fraud, waste and abuse in federal benefit programs, “restore integrity to taxpayer-funded safety-net programs” and ensure that benefits go only to eligible Americans.

Vance said last week that the task force has been “working around the clock to root out fraudsters who have taken advantage of Americans’ generosity for far too long.”

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He pointed out that since the task force was launched, it has exposed 447 California hospices suspected of more than $600 million in fraud, while the U.S. Small Business Administration has referred more than 560,000 fraudulent COVID-era loans totaling $22 billion to the Treasury for collection.

Fox News Digital reached out to Cherfilus-McCormick’s campaign for comment.