During their Senate confirmation hearings, both Pam Bondi, nominee for Attorney General, and Scott Bessent, nominee for Treasury secretary, affirmed their support for whistleblowers in response to questions from Senator Chuck Grassley.

Bondi Promises to Defend Constitutionality of False Claims Act

During Bondi’s confirmation hearing on January 15, Senate Grassley asked if she believed that the False Claims Act is constitutional and if she would commit to continuing the Department of Justice’s defense of its constitutionality. Grassley spoke about how, thanks in large part to “patriotic whistleblowers,” the False Claims Act has resulted in over $78 billion in collections for the government since 1986.

“I would defend the constitutionality of course of the False Claims Act,” Bondi stated. “The False Claims Act is so important, especially by what you said with whistleblowers.”

The constitutionality of the False Claims Act’s qui tam provisions have faced challenges recently. In September, the U.S. District Court for the Middle District of Florida ruled that the qui tam provisions are unconstitutional because they violate the Appointments Clause of Article II. The court ruled that by filing a qui tam lawsuit alleging Medicare fraud, whistleblower Clarissa Zafirov was granted “core executive power” without any “proper appointment under the Constitution.”

The U.S. government is urging the Eleventh Circuit to reverse the district judge’s “outlier ruling,” noting in a brief that “other than the district court here, every court to have addressed the constitutionality of the False Claims Act’s qui tam provisions has upheld them.”

Under the False Claims Act’s qui tam provisions, individuals may file lawsuits alleging government contracting fraud on behalf of the United States. The government then has the ability to intervene and take over the case, intervene and dismiss the case, or not intervene and let the whistleblower proceed with the suit. In successful qui tam cases, regardless of whether the government intervenes, whistleblowers are eligible to receive between 15 and 30% of the settlement or judgment.

Since the False Claims Act’s qui tam provisions were amended in 1986, the government has recovered over $78 billion, with more than $55 billion stemming from qui tam whistleblower suits. Striking down the constitutionality of qui tam would thus cripple the most important law protecting taxpayer funds from fraud.

Bessent States He will Support IRS Whistleblower Program

During Bessent’s confirmation hearing on January 16, Senator Grassley brought up the importance of the Internal Revenue Service (IRS) Whistleblower Program, noting that since it was established in 2006 ““it’s brought $6 billion back into the federal treasury.”

“This program could raise billions more if the IRS would use it to its full potential,” Grassley stated. “So I hope I can count on you, if you’re confirmed, to be supportive of this whistleblower program and work to ensure its full use to its full potential.”

“Senator Grassley, we are in complete alignment on this program,” Bessent said in response.

Through the IRS Whistleblower Program, qualified whistleblowers, individuals who voluntarily provide original information that leads to a successful IRS action, are eligible to receive monetary awards of 15-30% of the money collected thanks to their disclosure.

The program, which revolutionized tax enforcement by incentivizing insiders to come forward and disclose hard-to-detect misconduct, has struggled in recent years as delays have grown and payouts to whistleblowers have dropped. While recent administrative reforms have strengthened the program, advocates believe that it has even more potential.