WASHINGTON — President Donald Trump announced a new program on Tuesday that will pay people who report fraud in government programs, setting aside $25 million for rewards of up to $30,000.
The Fraud Whistleblower Incentive Program will be run by the Justice Department. A White House official said a tip has to lead to a successful prosecution or a government enforcement action before the person who reported it can collect.
Trump went further than that description during the Oval Office announcement. He said whistleblowers would also get a 1% commission on money the government recovers, with no limit on how much a person could collect, and he said the payment would be made “if we recover the money” lost to fraud.
“People will make millions of dollars by turning others in,” Trump said.
He put a figure on it himself. “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,” he said.
Trump also named himself the judge of disputed claims. “Sometimes there’s a dispute as to who turned them in and who didn’t turn them in,” he said. “So I am going to do something which I think people will like. I will be the arbitrator of all of these decisions.”
The White House did not immediately respond to questions about the program after the announcement, USA Today reported. The questions include how Trump’s 1% offer fits with the $30,000 figure the official described.
Vice President JD Vance joined Trump at the event. Trump had earlier tapped Vance to lead a new anti-fraud initiative, and Vance has travelled the country promoting it, accusing Democrat-led states of not doing enough to stop fraud in programs such as Medicaid.
Vlogger Nick Shirley was the recipient of the first payment from the fund, for a video exposing alleged fraud in Minnesota, the New York Post reported. USA Today reported Shirley would receive the first $10,000 whistleblower check, and that a woman featured in his video was later charged with fraud.
“Every day, President Trump’s Task Force to Eliminate Fraud is zeroing in on the rampant abuse of taxpayer dollars and giving Americans the accountability they deserve”
Fraud tips are not new to federal law. The False Claims Act already lets people file civil lawsuits on the government’s behalf against those suspected of fraud and possibly receive part of what the government recovers, according to the Justice Department.
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