Former Congresswoman Barred from Federal Business Following Indictment for COVID Fund Misuse

Former Florida Representative Sheila Cherfilus-McCormick has been suspended from doing business with the federal government, a decisive action by the Department of Homeland Security following her resignation amid serious fraud allegations. The Florida Democrat, who stepped down in April after facing mounting pressure from a House ethics investigation, can no longer receive federal contracts, grants, or other government funds.

The suspension follows Cherfilus-McCormick’s indictment by a Miami grand jury in November 2025 for allegedly misappropriating $5 million in COVID-19 FEMA relief funds and making illegal campaign contributions. DHS’s action also extends to her brother, Edwin Cherfilus, and other associates and affiliated entities named in the federal indictment.

“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.”

The House Ethics Committee had been investigating Cherfilus-McCormick prior to her resignation, uncovering 18 campaign finance violations, five counts of false financial disclosures, three counts of misusing official funds, and one count of lack of candor. Republicans had vowed to force a vote to expel her from Congress, pushing her to resign before the committee could formally recommend punishment.

Despite resigning from Congress and facing these serious charges, Cherfilus-McCormick has maintained her innocence and is still campaigning to regain her seat representing Florida’s 20th district in the November election.

“This was not a fair process,” she claimed in a press release announcing her resignation, arguing that the House Ethics Committee “refused my new attorney’s reasonable request for time to prepare my defense.” She added, “I simply cannot stand by and allow my due process rights to be trampled on, and my good name to be tarnished.”

The suspension aligns with President Donald Trump’s executive order establishing the Task Force to Eliminate Fraud, led by Vice President JD Vance. This initiative aims to combat fraud, waste, and abuse in federal benefit programs and ensure taxpayer funds reach only eligible recipients.

Vance recently highlighted the task force’s achievements, noting it has already exposed 447 California hospices suspected of more than $600 million in fraud. Additionally, the U.S. Small Business Administration has referred over 560,000 fraudulent COVID-era loans totaling $22 billion to the Treasury for collection.

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

The case reflects growing concerns about oversight of pandemic relief programs, which disbursed trillions of dollars quickly during the COVID-19 emergency. Government watchdogs have estimated that hundreds of billions in relief funds may have been improperly paid out or stolen through various fraud schemes since 2020.

For Cherfilus-McCormick, the suspension represents a significant additional penalty beyond the ongoing criminal case. Federal suspension prevents individuals and entities from participating in government programs and can severely impact their ability to conduct business, especially for those whose operations depend on government contracts or funding.

The former congresswoman’s campaign did not respond to requests for comment regarding the suspension. Her case continues to work through the legal system as she simultaneously campaigns for reelection to the very office she recently vacated under pressure.