The False Claims Act

The False Claims Act (FCA) is the United States government's primary tool for recovering money lost to fraud. It allows both the government and private citizens acting on the government's behalf to sue companies and individuals who knowingly submit false claims for federal funds, and to recover up to three times the government's losses. Since it was strengthened in 1986, the FCA has recovered more than $75 billion for the federal government.

If you know of fraud against the government, the FCA may entitle you to a share of what the government recovers. This page explains where the law came from, how it works, and what it offers the people who come forward.

History: Lincoln's Law

The False Claims Act was born in the middle of the Civil War. Unscrupulous contractors were selling the Union Army crates of sawdust labeled as muskets, horses and mules too sick to work, uniforms that dissolved in the rain, and rotted food. The fraud was draining the war effort, and the government couldn't police it alone.

On March 2, 1863, President Abraham Lincoln signed the False Claims Act into law, which is why it is still known today as "Lincoln's Law." The original Act had a radical idea at its center: since the government couldn't be everywhere, it would deputize ordinary citizens. The Act's qui tam provision, named for a Latin phrase meaning "he who sues on behalf of the king as well as for himself," let any private person file suit against a fraudster on the government's behalf and keep a share of the recovery. Under the original 1863 law, that share was a full 50 percent, on top of double damages and a $2,000 penalty for every false claim.

The law worked, and then it was nearly killed. In 1943, at the height of World War II contracting, Congress amended the Act to sharply limit citizen suits. The amendments barred cases built on information the government already possessed and cut rewards so deeply that qui tam litigation all but disappeared for four decades.

It came back in 1986. Faced with headline-making defense procurement scandals ($435 hammers, $640 toilet seats), Congress passed the 1986 amendments, championed by Senator Chuck Grassley and Representative Howard Berman. The amendments raised damages from double to treble, increased per-claim penalties, restored meaningful whistleblower rewards of 15 to 30 percent, and added protections against retaliation. Modern FCA enforcement dates from that moment, and it has grown nearly every decade since, expanding from defense contracts to healthcare, pandemic relief, customs duties, and every other channel through which federal money flows.

How the Law Works

The FCA (31 U.S.C. §§ 3729–3733) imposes liability on anyone who knowingly submits, or causes someone else to submit, a false or fraudulent claim for government money, and on anyone who knowingly avoids an obligation to pay money to the government. "Knowingly" is broader than deliberate lying: it includes deliberate ignorance and reckless disregard for the truth. Honest mistakes are not FCA violations; choosing not to check is.

A defendant found liable faces:

• Treble damages: three times the government's actual loss; and
• Per-claim penalties: a separate civil penalty for each false claim submitted, adjusted annually for inflation and currently ranging from roughly $14,000 to nearly $29,000 per claim.

Because every false invoice, loan application, or reimbursement request can count as a separate claim, liability adds up quickly. That is exactly what gives the law its deterrent force.

The Qui Tam Process, Step by Step

A private person or entity who files an FCA case on the government's behalf is called a relator. Here is how a qui tam case actually proceeds:

1. The case is filed under seal. A qui tam complaint is filed confidentially in federal court and served on the government, not on the defendant. "Under seal" means the case is hidden from the public docket, and the defendant is not told it exists.
2. The government investigates. The Department of Justice has at least 60 days to investigate the allegations, and courts routinely extend that period; investigations may take years. During this time the relator's identity and information remain confidential.
3. The government decides whether to intervene. If the DOJ intervenes, it takes the lead in prosecuting the case. If it declines, the relator may pursue the case on the government's behalf anyway. Many significant recoveries have come from declined cases.
4. Resolution. Most successful FCA cases end in a settlement; some go to judgment. Either way, recovered funds go back to the United States, and the relator receives a court-approved share.

Read answers to common questions on our FAQs page.

Whistleblower Rewards

The FCA rewards the people who make its enforcement possible. A successful relator is typically entitled to between 15 and 30 percent of what the government recovers. The exact percentage is determined by a variety of factors, including the extent of government involvement and the value of the relator's contribution to the result. On large recoveries, relator awards regularly reach into the millions of dollars.

If you have information about fraud against the government, please contact us. Everything you share is treated as confidential from the moment of first contact.

Protections for Whistleblowers

Congress understood that people who report fraud take real risks, and it built protections into the law:

• Confidentiality while the case is under seal. Because a qui tam case begins under seal, the relator's identity is not publicly disclosed while the government investigates.
• Anti-retaliation protection. Under 31 U.S.C. § 3730(h), employees, contractors, and agents who are fired, demoted, harassed, or otherwise retaliated against for lawful whistleblowing activity are entitled to relief that can include reinstatement, double back pay with interest, and compensation for litigation costs and attorneys' fees.

Who Can Be a Relator?

Almost anyone with genuine, non-public knowledge of fraud: employees and former employees, competitors, contractors, and industry insiders. And not only individuals. Corporations, partnerships, and other entities can serve as relators too. You do not need to be the victim of the fraud, you only need to know about it.

You also don't need to have your case fully built, and you don't need a lawyer before reaching out to us. Even a single piece of information can be a meaningful starting point.

Important Limitations

Two things are worth knowing early. First, the FCA has a first-to-file rule: when two whistleblowers bring the same fraud, only the first case survives. Second, the law has a statute of limitations: in general terms, cases must be brought within six years of the violation (extendable in some circumstances, but never beyond ten). Both rules reward acting promptly.

The FCA Today

The False Claims Act is being used more aggressively than at any point in its history. In fiscal year 2025, the Department of Justice reported more than 1,250 qui tam lawsuits filed, the most ever, along with $6.8 billion in FCA settlements and judgments. In March 2026, the White House created a new Task Force to Eliminate Fraud, chaired by Vice President JD Vance, underscoring that fraud enforcement remains a priority across administrations.

Enforcement priorities keep expanding with the ways federal money moves:

• Pandemic relief fraud: false claims involving PPP loans and other COVID-19 relief programs remain a major enforcement focus as cases filed in recent years reach resolution.
• Customs and tariff fraud: with tariffs rising, evasion of customs duties (undervaluing goods, misdeclaring their origin, transshipping through third countries) has become one of the fastest-growing areas of FCA enforcement, with hundreds of millions of dollars recovered in 2026 alone.
• Healthcare fraud: false billing to Medicare, Medicaid, and other federal health programs.
• Government contract fraud: one of the law's oldest targets, from overbilling and substandard goods on military contracts to false certifications and bid-rigging on federal projects.
• Cybersecurity fraud: falsely certifying compliance with required cybersecurity standards, or concealing known breaches, on federal contracts.

Learn more about the common types of fraud.