The federal government recovered more than $6.8 billion through False Claims Act settlements and judgments during fiscal year 2025, setting a new all-time record. The announcement from the U.S. Department of Justice (DOJ) highlights the continued expansion of enforcement efforts aimed at uncovering fraud involving federal funds, particularly in health care, government contracting, and trade compliance.
For employees who witness fraud in the workplace, these numbers send a clear message that whistleblower reports remain one of the most effective ways the government uncovers wrongdoing. For employers and contractors, the figures show that enforcement activity is not slowing down.
At Lebau & Neuworth, we closely follow False Claims Act developments because of the direct impact on employees who step forward to report misconduct. This year’s results reflect a landscape where whistleblowers play a central role in protecting public funds.
The $6.8 billion recovered in fiscal year 2025 represents the largest single-year total in the history of the False Claims Act. Since Congress strengthened the statute in 1986, recoveries now exceed $85 billion nationwide.
Key enforcement data from the past year includes:
These figures reflect an aggressive approach by the DOJ toward identifying fraud and holding organizations accountable for false claims involving federal money.
Health care enforcement once again accounted for the largest share of recoveries. Of the total $6.8 billion obtained in fiscal year 2025, over $5.7 billion stemmed from health care-related matters.
These cases involved alleged misconduct affecting programs such as:
Beyond recovering funds, enforcement in this area often addresses practices that expose patients to unnecessary treatments, improper billing, or misleading reporting. The DOJ continued focusing on managed care organizations, prescription drug practices, and claims involving medically unnecessary services.
Many of these cases also resulted in additional recoveries for state Medicaid programs, extending the financial impact beyond federal losses alone.
False Claims Act enforcement extended well beyond health care in fiscal year 2025. The government pursued cases involving fraud tied to federal procurement, grants, and loan programs.
Particular attention was given to:
Fraud in government contracting does more than waste taxpayer dollars. It can undermine public trust, affect national security, and place service members and first responders at risk. These enforcement efforts show that compliance obligations tied to federal funds continue to receive close scrutiny.
The DOJ also expanded its focus on trade fraud through the launch of a cross-agency Trade Fraud Task Force. These cases target companies that allegedly evade tariffs and customs duties by misrepresenting:
By pursuing these matters under the False Claims Act, the government aims to recover lost revenue while protecting domestic industries and consumers from unfair trade practices.
Whistleblower lawsuits, known as qui tam actions, remain the backbone of False Claims Act enforcement. In fiscal year 2025, whistleblowers filed more cases than in any previous year, breaking a record set just one year earlier.
Under the False Claims Act, individuals who report fraud on behalf of the government may receive 15% to 30% of the recovered funds when a case succeeds. These financial incentives exist to encourage employees, contractors, and insiders to come forward when they uncover misconduct.
Qui tam cases may proceed with government involvement or, in some situations, continue independently. The high level of recoveries tied to whistleblower cases underscores how often insider reporting leads to meaningful outcomes.
The fiscal year 2025 enforcement results reinforce that employees play a central role in exposing fraud tied to federal programs. Many whistleblowers first identify issues while performing everyday job duties, reviewing billing practices, handling compliance tasks, or managing government contracts.
Employees who report misconduct often face workplace retaliation, including termination, demotion, or harassment. Federal law provides protections for whistleblowers, but navigating these claims requires careful planning and experienced legal guidance.
False Claims Act cases demand attention to detail, discretion, and a clear understanding of employee rights. Our Baltimore-based employment attorneys work with individuals who raise concerns about fraud, misuse of public funds, and employer misconduct tied to government programs.
If you have information about fraudulent practices or believe you have faced retaliation for reporting wrongdoing, the experienced team at Lebau & Neuworth can help you evaluate your options. We serve employees throughout Maryland and Washington, D.C., and remain committed to protecting careers, livelihoods, and workplace dignity.
Contact Lebau & Neuworth today to discuss your situation and learn how we can stand up for your rights.
