BUTLER COUNTY, IOWA – Thanks to a law U.S. Sen. Chuck Grassley (R-Iowa) championed, the federal government recovered $2.68 billion in 2023 and settled the most fraud cases ever in a single year. Since Grassley strengthened the False Claims Act in 1986, it has recouped approximately $75 billion for taxpayers and saved countless more by deterring would-be fraudsters.
“The False Claims Act is arguably the most powerful tool we have to promote accountability and prevent waste, fraud and abuse,” Grassley said. “By protecting whistleblowers who shine a light on wrongdoing, this law empowers those brave individuals to come forward and continues to deliver for the American people. The value of the False Claims Act cannot be overstated; preserving and strengthening it will always be in our nation’s best interest.”
In addition to securing significant recoveries, the False Claims Act last year was responsible for resolving 270 cases related to the Paycheck Protection Program (PPP). The government disbursed PPP loans in 2020 to help small businesses stay afloat during the COVID-19 pandemic, but the rushed rollout and lack of oversight made the program susceptible to abuse. The False Claims Act also consistently roots out health care fraud, which accounted for nearly 70 percent of 2023 recoveries. Read more about 2023 False Claims Act settlements and recoveries HERE.
Background:
Grassley in 1986 updated the False Claims Act, the law enabling the government to recover taxpayer dollars from entities that defrauded federal agencies. A key provision in that update, known as qui tam, allows whistleblowers to bring lawsuits against alleged fraudsters on behalf of the government and share in any recoveries. The law has been so successful that some federal agencies have established their own similar programs to incentivize whistleblowers who expose fraud.
Despite the False Claims Act’s overwhelming success, courts and defendants have attempted to twist a 2016 Supreme Court ruling to mischaracterize and weaken the law. This past June, the Supreme Court issued a unanimous decision upholding the congressional intent of the law to hold accountable those who knowingly defraud the government. Grassley filed an amicus brief in the case.
Grassley leverages his senior position in Congress to conduct oversight and safeguard the False Claims Act. The full Senate in May passed his Administrative False Claims Act to update the law pertaining to smaller, and potentially more frequent, instances of fraud against the government. Ahead of the 10th annual Whistleblower Appreciation Day, Grassley reintroduced his bipartisan, bicameral False Claims Amendments Act – a bill to ensure those who knowingly defraud the government cannot escape liability when the government has made recurring payments on a fraudulent claim.
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