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ARTICLE · 22 SEPTEMBER 2025

How Do Whistleblower Rewards Work Under The False Claims Act?

Under the False Claims Act, whistleblowers who come forward with information regarding fraud against government programs can receive monetary rewards.

United StatesEmployment and HR

Under the False Claims Act, whistleblowers who come forward with information regarding fraud against government programs can receive monetary rewards. These rewards seek to incentivize anyone with inside information regarding fraud against the government to come forward and shed light on unlawful activity by filing a qui tam lawsuit.

What is the History of the False Claims Act?

Enacted in 1863 during the American Civil War, the False Claims Act (FCA) sought to combat the abuse of federally funded Union Relief programs and curb war profiteering. The qui tam provision of the FCA has its roots in the old English legal mechanism of "qui tam pro domino rege quam pro se ipso in hac parte sequitur," which means "[he] who sues in this matter for the king as well as for himself." This procedure was groundbreaking in U.S. law, as it allowed private citizens to act as "private attorneys general" and file actions on the government's behalf.

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