President Donald Trump announced a new federal initiative Tuesday that will pay Americans up to $30,000 for information leading to fraud charges, while proposing an additional reward equal to 1% of stolen government funds recovered through their assistance. The president said the incentives could make some whistleblowers millionaires and declared that he intends to personally oversee decisions about who receives the payments.
The announcement came during an Oval Office event attended by Vice President JD Vance, who is leading the administration’s campaign against fraud involving federal programs, and 24-year-old independent journalist Nick Shirley, whose investigations into suspected misuse of government money in Minnesota have attracted national attention.
The Justice Department’s new Fraud Whistleblower Incentive Program, known as WHIP, is being launched with $25 million available for rewards. Under the initial framework, individuals who provide information resulting in federal fraud charges may qualify for payments of up to $30,000. Trump went further during the announcement, proposing an additional percentage-based incentive for tips that help the government recover stolen money.
“You could have stolen $2 trillion, or whatever the ultimate number is going to be, and at 1% people will make millions and millions of dollars for turning in what actually is a somewhat routine crime,” Trump said.
“$100 billion, you get a 1% commission, and I think that will be amazing.”
The president also announced that he would take a direct role in determining who deserves compensation, explaining that competing claims could arise when several individuals provide information about the same fraudulent operation.
“It’s too bad that you had to ruin your youth to find that such bad people exist,” Trump told Shirley, praising the young investigator’s efforts to uncover suspected fraud.
Shirley gained widespread recognition after releasing videos examining Minnesota childcare facilities, including the Minneapolis establishment whose sign identified it as the “Quality Learing Center,” with the word learning misspelled.
Speaking from behind the Resolute Desk, Shirley recalled his reaction upon seeing the sign, saying, “I couldn’t believe it when I saw that”.
Shirley was identified as the first recipient of a $10,000 award under the new initiative, although the payment was not publicly presented during the Oval Office event.
The president said he wanted to personally resolve disagreements about whistleblower eligibility rather than leave every decision to government officials.
“sometimes there’s a dispute as to who turned them in and who didn’t turn them in,” Trump explained.
“So I am going to do something which I think people will like. I will be the arbitrator of all of these decisions,” he said.
“In other words, I’ll determine whether or not the person is deserving … and I will be very generous.”
Trump also encouraged members of the news media to participate in the program, suggesting that journalists could use information obtained through their reporting to help uncover government fraud.
“you know a lot of things that are happening,” he told reporters, describing journalism as “not a very profitable thing to do — but it’s a very important thing to do.”
Under the Justice Department’s announced rules, whistleblowers will be able to submit information through the federal government’s fraud-reporting website. One of the program’s distinguishing features is that payments may be issued much earlier than under traditional federal whistleblower arrangements.
The Justice Department explained that “most existing Government whistleblower rewards programs issue awards only after the final resolution of a criminal matter, including the forfeiture and appeals process,” whereas the new initiative would permit rewards “following the filing of criminal charges.”
Existing federal programs already provide substantial incentives for reporting certain categories of wrongdoing. The Internal Revenue Service operates a whistleblower program that can award eligible individuals between 15% and 30% of recovered tax proceeds, while the False Claims Act allows qualifying whistleblowers to receive a portion of money recovered from fraud against the government.
Vance argued that those existing mechanisms fail to address most of the fraudulent activity being uncovered by the administration.
“over 99% of the fraud that we’re finding in the federal government isn’t covered by the False Claims Act,” the vice president said.
He also indicated that the proposed 1% recovery incentive would not necessarily require criminal charges to be filed against the individuals responsible.
“our plan is not to limit this just to criminal prosecutions… if you find the money and you help us recover it, then you benefit from the program,” Vance said.
The new program will cover suspected fraud involving federal healthcare spending and benefits administered by several government departments, including Agriculture, Labor, Health and Human Services, Housing and Urban Development, Education, Veterans Affairs, and the Small Business Administration. It will also cover certain programs administered by the Department of War.
Healthcare-related investigations will place particular emphasis on suspected fraud involving hospices, home healthcare providers, daycare operations and specialized services.
Attorney General Todd Blanche described the initiative as an effort to enlist ordinary citizens in identifying fraud and accelerating federal investigations.
“Protecting the American people from fraud remains a top priority for the Department of Justice,” Blanche said. “The Fraud Whistleblower Incentive Program (WHIP) offers everyone the opportunity to be part of the solution, help expose fraud, and be rewarded quickly for their efforts. I urge all Americans to use this program and play an active role in bringing fraudsters to justice.”
Assistant Attorney General Colin McDonald, who leads the Justice Department’s National Fraud Enforcement Division, said the new incentives would expand the government’s ability to uncover schemes that might otherwise remain hidden.
“This groundbreaking program will enlist the public as part of the fraud-fighting apparatus and reward them quickly for helping the country in the war on fraud.”
The Justice Department said qualifying payments will generally range from $10,000 to $30,000, with recipients potentially remaining eligible for larger awards through other federal programs if their information eventually results in significant financial recoveries. The department will retain discretion over the awards.
The announcement builds upon an extensive anti-fraud campaign led by Vance, whose task force has targeted suspected abuses in federal healthcare programs, government benefits and other taxpayer-funded services.
Last month, Vance announced that approximately 750,000 Affordable Care Act enrollees would be removed from coverage because of suspected fraudulent enrollment, with another 450,000 cases placed under review.
The administration has also withheld certain Medicaid reimbursements involving programs considered vulnerable to fraud, imposed restrictions on some Medicare medical-equipment suppliers and suspended 447 hospice providers in California.
Other enforcement measures have included action against 270 commercial driver’s license training schools accused of providing inadequate instruction and improperly qualifying truck drivers.
Under the new initiative, Americans with credible information about suspected fraud can submit reports for federal review. The Justice Department said rewards will be considered after criminal charges are filed, rather than requiring whistleblowers to wait until the conclusion of potentially lengthy prosecutions and appeals.
The Treasury Department has committed $25 million to launch the program, while the administration continues developing the additional recovery-based incentives outlined by Trump and Vance during Tuesday’s announcement.