Washington: The United States has launched a $25 million whistleblower programme offering rewards of up to $30,000 to people whose information helps federal prosecutors bring criminal fraud charges, as the Trump administration steps up efforts to detect misuse of taxpayer money.
The Justice Department announced the Fraud Whistleblower Incentive Program (WHIP) Tuesday, introducing a system under which eligible informants can receive payments much earlier than under traditional federal whistleblower arrangements.
The programme will offer awards ranging from $10,000 to $30,000 for original information leading to criminal charges involving specified categories of fraud.
The Department of the Treasury has committed $25 million to support the initiative, which will be administered by the Justice Department’s National Fraud Enforcement Division.
Attorney General Todd Blanche said the programme would encourage individuals with knowledge of fraudulent activities to come forward.
“Protecting the American people from fraud remains a top priority of the Department of Justice,” Blanche said.
He said the initiative would allow people to help expose wrongdoing while receiving financial rewards more quickly than under existing programmes.
The new system differs from traditional whistleblower arrangements because eligible payments can be made after criminal charges are filed and made public, rather than waiting for a conviction, forfeiture proceedings or the conclusion of appeals.
The department said the earlier payment mechanism was intended to encourage prompt disclosure of information and help investigators identify fraudulent schemes before additional public money was lost.
Assistant Attorney General Colin McDonald, who heads the National Fraud Enforcement Division, said the initiative would expand the government’s ability to obtain information about criminal wrongdoing.
The department said people submitting information must provide original, specific, truthful and timely evidence that contributes to criminal charges.
Participation must be voluntary, and individuals who actively participated in the fraud generally cannot qualify for rewards.
A whistleblower may become eligible when the information leads prosecutors to obtain and unseal an indictment or criminal complaint.
However, the payment is not automatic. The Justice Department retains discretion to determine whether an individual qualifies and whether an award should be made.
The programme also does not require prosecutors to recover a minimum amount of money before considering an early-stage reward.
This distinguishes it from other federal whistleblower schemes in which payments may depend on financial penalties or forfeited assets.
Individuals who receive an early payment may remain eligible for additional awards under separate government whistleblower programmes if their information subsequently results in substantial financial recoveries.
The initiative follows an October 1 directive from McDonald calling for stronger incentives to encourage people to report credible information about fraud.
The department said the programme had been developed in 19 days and would initially operate as a three-year pilot.
Members of the public can submit information through a federal fraud-reporting portal.
The announcement comes as President Donald Trump and Vice President JD Vance have made the detection of fraud involving federal programmes a priority of the administration.
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