Key takeaways:
- Trump said tipsters could receive 1% of reported fraud and that he would decide who gets paid.
- Government websites describe rewards of up to $30,000, while a Justice Department website says the department has sole discretion over awards.
- Vance said more than 99% of the federal fraud the administration is finding is not covered by the False Claims Act.
President Donald Trump said Tuesday that he would personally decide who receives rewards under a new federal program for reporting fraud, even as government websites describe limits on payments and give the Justice Department discretion over awards.
“I will be the arbitrator of all of these decisions,” Trump said during an Oval Office announcement with Vice President JD Vance, who leads the administration’s fraud task force. “I’ll determine whether or not the person is deserving and I will be very generous, believe me.”
Trump said people who report fraud against the U.S. government and taxpayers could receive 1% of the amount they uncover. He said that would apply even to a report involving $100 billion in fraud and suggested tipsters could make “millions and millions” of dollars.
The program’s published terms describe a different arrangement. America.gov/fraud says successful whistleblowers can receive up to $30,000 and ties payment to a report resulting in criminal charges, according to CBS News. The Guardian reported that the Justice Department website describes rewards of up to $30,000 for tips at the “charging stage of a criminal case” and says the department has “sole discretion” over awards.
Asked by CBS News to clarify the discrepancy, Trump said there was no limit on compensation and that criminal charges were not necessary. “That’s the answer. I quit while I’m ahead,” Vance joked.
Trump said he would also resolve disputes when more than one person claimed to have reported the same alleged fraud. “So if two people are fighting over it, maybe they’ll split it or maybe whatever, but I’ll make that determination,” he said, promising that decisions would be made fairly and that people would get their money immediately.
It remains unclear how Trump’s proposed role would work alongside the Justice Department’s stated authority. The Guardian said it had requested comment from the department and the White House. CBS News reported that submissions to America.gov/fraud are encrypted and go directly to the Treasury Department, while the Justice Department will administer the program. It was not immediately clear who reviews the reports.
Vance said the program is intended to reach alleged fraud that falls outside the False Claims Act, an existing route for whistleblowers to receive a share of money recovered through lawsuits. “Over 99% of the fraud that we’re finding in the federal government isn’t covered by the False Claims Act,” he said. The Guardian reported that whistleblowers can receive 15% to 25% of penalties when the government intervenes in a False Claims Act suit. CBS News said some whistleblowers can be entitled to as much as 25% to 30% of recovered proceeds.
Nick Shirley, a YouTuber who published a video alleging fraud at Minnesota childcare centers, stood with Trump at the announcement. Vance cited Shirley as an example of the kind of person the administration wants to encourage to report suspected fraud. Trump also invited reporters to submit tips, saying they could receive rewards if their news outlets allowed it.
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