USA - Nationwide: A Whistleblower Representation Overview

US Whistleblower Law: Sector Overview

Whistleblower reward programs in the United States have never been more widespread – or complex. A convergence of uneven enforcement activity, new programs, and shifting agency priorities means that prospective tipsters have more routes than ever for coming forward but less certainty about whether and how the government responds. Meanwhile, companies face a broader and faster-moving enforcement landscape when it comes to whistleblower-initiated actions. Across virtually every major federal whistleblower program, the past year has brought landmark developments that will shape the practice for years to come.

False Claims Act Trends: Healthcare, Customs, and Data Mining

The False Claims Act (FCA) remains the engine of federal fraud enforcement. In fiscal year 2025, the Department of Justice (DOJ) recoveries exceeded USD6.8 billion – the highest single-year total in the statute’s history – driven by nearly 1,300 whistleblower-initiated qui tam filings. Healthcare enforcement still dominates FCA recoveries, particularly involving Medicare Advantage, medically unnecessary services, and pharmaceutical kickbacks. For example, in January 2026, DOJ secured its largest-ever recovery involving Medicare Advantage, a USD581 million settlement with Kaiser Permanente resolving claims brought by whistleblowers.

Customs fraud is also quickly emerging as a major area of FCA enforcement, highlighted by a May 2026 settlement with various aluminum companies for USD549 million. Importers face heightened scrutiny regarding tariff evasion, country-of-origin misrepresentations, undervaluation schemes, and compliance with trade restrictions.

The past year has also seen an explosion of cases based on data mining, as opposed to more traditional, insider whistleblower cases. Data miners accounted for 45% of last year’s whistleblower-initiated FCA filings. These relators seek to use publicly available data to detect patterns of fraud in a variety of areas, such as healthcare claims data and COVID-era relief programs. DOJ has launched a FOCUS initiative to attract “an insightful application of sophisticated technological capabilities to regulatory frameworks to help identify potential fraud that would otherwise go undetected.”

False Claims Act: Constitutional Cloud

Against the backdrop of robust enforcement, the constitutionality of the FCA’s qui tam provisions is now one of the most closely watched issues in whistleblower law. Since the FCA was enacted in 1863, whistleblowers have been permitted to pursue their allegations whether the government joins the case or not, subject to the government’s ongoing oversight and ability to dismiss the case. But in a 2023 Supreme Court case, United States ex rel. Polansky v. Executive Health Resources, Inc., 599 U.S. 419 (2023), Justice Thomas penned a dissent arguing there are “substantial arguments” that qui tam suits violate Article II because private relators exercise executive power without sufficient presidential control. Justices Kavanaugh and Barrett separately wrote that the Court should consider the issue in an appropriate case.

Following Polansky, only the Middle District of Florida has found the FCA’s qui tam provisions unconstitutional, first in United States ex rel. Zafirov v. Florida Medical Associates, LLC, 751 F. Supp. 3d 1293 (M.D. Fla. 2024), and again in United States ex rel. Gose v. Native American Services Corporation, 2025 WL 1531137 (M.D. Fla., 2025). To date, no other courts have agreed, and many courts have rejected this argument, leaning on qui tam laws’ 1,300-year history in the British Isles and 300-year history in the United States. Appeals pending in the Third and Eleventh Circuits may create the conditions for eventual Supreme Court review.

SEC: Sustained Tips but Stricter Standards and Leaner Staffing

Under Chair Paul Atkins, the Securities and Exchange Commission (SEC) has adopted a markedly sharper posture toward whistleblower award applications. Perhaps most notably, the SEC has significantly reinterpreted Dodd-Frank and its own rules when it comes to so-called “original source” whistleblowers who report to the press or another government agency before filing a formal tip with the SEC. Whistleblowers who do not approach the SEC first now face a far greater risk of being denied an award, though the SEC’s approach is currently being challenged in three circuits. Because of these changes and the slower pace of award determinations, payouts fell sharply over the last year, to just over USD60 million from USD255 million.

Further, although tips remain strong – up roughly 8% – there are fewer SEC attorneys to work them. Nearly one-fifth of the SEC’s staff left during the last fiscal year, and more significant departures have followed. In addition, the SEC has abandoned many high-profile cases under Atkins, with cryptocurrency enforcement in particular grinding to a halt. In this new landscape, prospective whistleblowers must think carefully about whether they can satisfy the SEC program’s technical requirements and whether the Commission has the staffing and political will to see their case through.

IRS: Long-Overdue Reform Advances

Despite its USD7.5 billion track record, the Internal Revenue Service (IRS) Whistleblower Program has faced sustained criticism over its long timeline and seemingly unjust outcomes. But times are changing. In recent years, leadership at the IRS Whistleblower Office has championed the program and advanced an extensive new operating plan to modernize and reform it. These reforms broke the logjam on long-delayed awards, resulting in more than USD123 million in rewards. In addition, the average award percentage – which can range from 15–30% – has risen sharply from its historical average of 17.7% to 26%.

Separate from these internal improvements, the House recently passed the IRS Whistleblower Program Improvement Act (H.R. 7959) by a 346-10 bipartisan vote. The bill includes a number of provisions to strengthen whistleblowers’ rights to challenge adverse award determinations and incentivize prompt payments. Thus, from a pragmatic perspective, the IRS whistleblower program is steadily improving. But like the SEC, the IRS has faced deep staffing cuts that may limit its ability to pursue tips.

FinCEN: A Major New Program Takes Shape

After operating for years without full implementing regulations, the FinCEN whistleblower program took a big step forward by publishing a comprehensive Notice of Proposed Rulemaking in March 2026 that proposes rules and procedures for tips, award eligibility, and anti-retaliation protections. Public comments are due June 1, 2026. Despite its regulatory limbo, the program has produced a significant number of tips in recent years and appears to have significant support as FinCEN and OFAC look to enforce sanctions and money laundering violations involving Iran, in particular.

Antitrust: A New Frontier Opens

The DOJ Antitrust Division entered the whistleblower rewards space in July 2025 with the launch of its Antitrust Whistleblower Rewards Program, a joint initiative with the US Postal Service targeting criminal bid-rigging, price-fixing, and market allocation schemes. Within six months, the Division paid its first-ever award: USD1 million to an individual whose information led to a USD3.28 million criminal fine against an online vehicle auction platform. Senior DOJ officials have since described a surge in incoming reports. The program draws on the model of the DOJ’s Procurement Collusion Strike Force, which itself emerged from earlier antitrust-related False Claims Act enforcement. For antitrust practitioners and potential whistleblowers alike, this is a space worth watching closely.

DOJ Forfeiture Program: Wider Scope, Active Pipeline

The DOJ Criminal Division’s Corporate Whistleblower Awards Pilot Program, launched in August 2024, was substantially expanded in May 2025. Originally focused on financial institution crimes, foreign bribery, domestic corruption, and private healthcare fraud, the program now also covers sanctions violations, trade and customs fraud, procurement fraud, cartel activity, and material support of terrorism. Awards of up to 30% of the first USD100 million in net forfeiture proceeds are available, though fully discretionary.